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Toyota, JLR Clash Over EU ‘Made in Europe’ Rule

Financial Times Companies •
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Toyota and Jaguar Land Rover warn that the EU’s “Made in Europe” push could raise costs and cut jobs. The Industrial Accelerator Act would tie public procurement to vehicles assembled inside the bloc and impose a 70 % local‑content bar for components, barring batteries. Excluding UK, Turkey and Morocco suppliers threatens supply chains for global manufacturers today.

Toyota’s Europe boss Yoshihiro Nakata said excluding key partners could undermine investment and tech transfer. With 25,000 staff across eight plants, Toyota argues that vehicles made in Japan, the UK and Turkey should qualify for subsidies. The company warns that stricter rules would make European cars pricier than Chinese rivals for customers today and profits.

Jaguar Land Rover, owned by Tata Motors, calls for the EU to assess a maker’s economic contribution rather than just assembly location. It warns that replacing UK parts with EU ones could destabilise both supply chains. Nissan, a major UK employer, said it would close its Sunderland plant if the policy takes effect in 2025 and.

The scheme aims to lift EU manufacturing from 14.3 % of GDP in 2024 to 20 % by 2035, but critics fear it will raise prices and hurt competitiveness. Supporters like Volkswagen and Stellantis back the plan, while parts bodies demand no dilution of the 70 % rule. Brussels must balance green goals with industrial realities for future growth and jobs.