ACEA issues position on the Industrial Accelerator Act
3 Jul 2026
Supports measures, but automotive body warns about continuing “risk of hollowing out the EU industrial base…”
Brussels – The European Automobile Manufacturers’ Association (ACEA) has published a position paper on the EU’s Industrial Accelerator Act (IAA), backing the proposals to safeguard EU manufacturing and reduce dependence on other regions for clean technologies.
As negotiations enter a “critical phase”, ACEA said its paper sets out the automotive industry’s recommendations to ensure the legislation strengthens Europe’s industrial base while supporting competitiveness.
The sector is facing mounting economic, competitive and geopolitical pressures, and needs a framework that supports, rather than hinders, its transition,” the association noted in a 1 July release.
The industry, it added, is facing a shrinking EU market, fierce competition, geopolitical instability, rising manufacturing costs and increasing regulatory requirements, while investing billions in electrification to meet 2030 targets.
“The risk of hollowing out the EU industrial base is real, and smart, targeted measures to support homegrown manufacturing are justified. But the scale of the challenge facing our sector must not be underestimated,” stated Sigrid de Vries, director general of ACEA.
“With a number of important tweaks, the Industrial Accelerator Act can become a catalyst for industrial strength. Importantly, the Act must also be firmly embedded in a comprehensive industrial policy,” added De Vries.
The association also suggested that the Industrial Accelerator Act for the automotive sector should focus on:
- Making “Made in EU” benefits substantial enough to compensate for the costs of localising in Europe
- Narrowing down the geographic scope to EU27 + the UK, whilst also protecting existing investments of European manufacturers in selected countries (Turkey, Morocco) in a targeted way
- Introducing leaner and fairer rules of calculating “local content”, recognising the significant value added by vehicle manufacturers in vehicle production, and the important economic role of vehicles manufactured in Europe for exports
- Setting realistic targets for EV batteries in line with the actual ramp-up of battery production
- Tailoring the proposal to the specific needs of various segments (cars, vans, trucks, buses) that have different value chain and cost structures and operate under different conditions.
Read the full ACEA paper
