‘Made in Europe’ plan could hurt automotive industry, warns DEİK

‘Made in Europe’ plan could hurt automotive industry, warns DEİK

BRUSSELS

Mehmet Ali Yalçındağ, Türkiye -Europe Business Councils Coordinator Chairman at the Foreign Economic Relations Board (DEİK) has warned that the demands put forward by European automotive giants under the “Made in Europe” initiative would harm both Turkish and European manufacturers.

His remarks came after Europe’s largest automotive groups, including Volkswagen, Stellantis and Renault, sent a joint letter to European Parliament members regarding the initiative.

Yalçındağ noted that the companies suggested lowering the threshold required for a vehicle to qualify as “Made in Europe” from 85 percent to 70 percent of value added within EU member states.

“The issue is of great importance for the Turkish automotive sector. Because the production taking place in the Türkiye leg of the value created and supply chains in the automotive sector would remain within the 30 percent bracket, even if the proposal in the letter is implemented,” he added.

“This approach raises the risk of disrupting business plans between European and Turkish companies or reducing production capacity. Even if existing capacity is not affected, it would mean turning away from cooperation opportunities in the automotive sector,” Yalçındağ said.

Recalling that the electrification transition in commercial vehicles is expected to accelerate after 2030, Yalçındağ said: “Today, 50 percent of the buses you see on the roads in Europe are produced in Türkiye. Some are also manufactured entirely in our country by Turkish companies.” Türkiye is an integral part of Europe’s supply and value chains through the Customs Union, he stressed.

Yalçındağ emphasized that defining Türkiye as a third country and evaluating it within the 30 percent bracket, despite its strong position in Europe’s supply and value chains for 30 years thanks to the Customs Union, would mean a narrowing of scope and vision not only for the Turkish private sector but also for European companies and the EU economy.

Yalçındağ underlined that if the “Made in Europe” approach also includes Türkiye, lower-cost and high-quality production bases could be preserved, capacities could be increased and this would benefit all parties.

There are significant cooperation opportunities between Türkiye and Europe not only in the automotive sector, but also in energy, defense, supply chains, digitalization and the green transition, both existing and with high potential, he said.

“For this reason, instead of discussing and opposing steps that could lead to setbacks in areas where progress has already been made, we need to preserve existing gains and move them further forward,” Yalçındağ added.

“We will not view positively any alternative proposals by the EU that aim to exclude our country. As DEİK, we will continue to convey our messages on all platforms in EU countries and carry on our lobbying activities in this direction,” he said.

market ,