ACEA Urges Competitiveness Focus in Industrial Accelerator Act Debate

The European Automobile Manufacturers Association (ACEA) has called for the proposed Industrial Accelerator Act (IAA) to prioritise competitiveness over 'Made in Europe' mandates, warning that such requirements without addressing underlying conditions could weaken rather than reinforce the EU's industrial base. Speaking after a debate at the European Forum for Manufacturing in the European Parliament on 21 April 2026, ACEA stressed that the automotive sector, which sustains over 13 million European jobs and operates more than 250 factories in the EU, faces severe pressure from shrinking markets, tariffs, and demanding decarbonisation targets. ACEA noted that Asia, led by China, now produces over 60% of the world's vehicles, while the EU's share has dropped below 15%, and Chinese-made vehicles represent 7% of EU sales.

The association's intervention builds on the European Commission's outline of the IAA on 17 April 2026, which introduced targeted origin requirements for public procurement in strategic sectors including electric vehicles. ACEA supports the IAA's ambition to keep added value in Europe and reduce strategic dependencies, but argues that 'Made in Europe' mandates alone are insufficient. Instead, ACEA urges a focus on affordable energy, critical raw materials, battery value chains, administrative simplification, faster permitting, and securing export markets.

ACEA also highlighted a growing disconnect between regulatory targets and market reality in the EU's CO2 standards, which focus on battery electric vehicles (BEVs). The association warned that without course correction, manufacturers face billions in penalties or costly trade-offs, such as buying credits from competitors like Tesla, which reported $1.99 billion in credit revenue in 2025. ACEA called for flexibilities for 2030, including a broader averaging regime, adjustments to van targets, and a review clause for 2029. This follows the Commission's recent automotive package, which ACEA described as a step in the right direction but insufficient to close the gap between ambition and feasibility.

The debate reflects broader tensions in EU industrial policy. On 16 April 2026, Parliamentarians clashed over the Innovation Fund's performance, with the European Court of Auditors criticising sluggish disbursement and weak operational procedures, while the Commission defended the fund's risk tolerance for early-stage projects. Meanwhile, Commissioner Šefčovič clarified on 16 April that the STEP Seal does not affect planning permissions, and on 15 April he addressed steel sector protection amid trade turbulence. The IAA itself builds on a series of recent EU industrial policy moves, including President von der Leyen's 20 April commitment to improve IPCEI funding reliability without new powers.

ACEA's position underscores a cleavage between EU integration and national sovereignty, as well as between consumer protection and business competitiveness. The IAA's origin requirements could boost EU manufacturing but risk higher costs for consumers and reduced market flexibility for automakers. ACEA's call for technology-neutral CO2 standards reflects a tension between innovation and tradition, as the EU's BEV focus may disadvantage European manufacturers compared to more flexible approaches in other markets. The outcome will shape the EU's industrial resilience and the automotive sector's ability to compete globally.