Introducing a minimum requirement for European content in cars sold in the EU is crucial for the region’s auto sector competitiveness, says Valeo CEO. The European Commission is discussing ways to secure the sector’s future amid the shift to electric vehicles and competition from China. Car executives want revisions to the EU ban on new combustion engine vehicles from 2035. Suppliers are pushing for a minimum content requirement of 80%.

Valeo CEO highlights the importance of a European content quota at the IAA auto show in Munich, citing similar incentives in the US and India. The European Commission plans to gradually introduce content requirements for battery cells and components. However, there is opposition from some companies, particularly in Germany, regarding the necessity of local content.

Further discussions on the European content requirement proposal are expected during talks with European Commission President Ursula von der Leyen. The German VDA car lobby emphasizes that European resilience should not be compromised by excessive regulations like local content requirements. More work is needed to convince companies in Europe about the significance of local content.

Read more at Yahoo Finance: Valeo CEO backs minimum EU content in cars to aid region’s competitiveness