Renault backs EU-wide local content rules with flexible approach – report

Renault Group supports calls from automotive suppliers for the instauration of European Union (EU)-wide section sourcing rules, the automaker’s CEO François Provost told Reuters.

However, Provost said this backing depends connected the Local Content Requirements being defined successful a much flexible way.

Some suppliers person urged to mandate that 80% of components successful vehicles sold successful the EU beryllium sourced locally, mirroring provisions already applied successful the US.

These discussions, to antagonistic contention from Chinese manufacturers, signifier portion of the strategical dialog launched earlier this twelvemonth betwixt EU institutions and the automotive industry.

The European Commission is expected to contiguous a bundle of measures for the assemblage connected 10 December.

Provost, however, said helium did not expect specified stringent rules to beryllium successful spot by that date.

The main said: "We person to beryllium realistic: analyzable section contented schemes per model, with mandatory parts, volition ne'er work.

"The lone strategy that tin enactment is section contented averaged crossed a manufacturer's sales. This would let america to execute our desired objective, which is to enactment the European assemblage and, supra all, our suppliers.

According to Provost, a threshold acceptable connected this averaged ground - for illustration astir 60% - could beryllium much acceptable to different manufacturers, including German brands that person been wary of strict sourcing constraints.

These companies fearfulness that rigid rules could restrict supplier prime and undermine their outgo competitiveness.

Provost said: "Any different solution would extremity up not moving and not being implemented … if that is what we want!”

The statement comes amid increasing interest among European parts makers astir accumulation shifting retired of the bloc.

The European relation of automotive suppliers CLEPA has repeatedly warned that manufacturing is astatine hazard of being relocated and has estimated that up to 350,000 jobs could beryllium threatened by 2030.

Christophe Périllat, CEO of French components radical Valeo, told investors that without binding European contented rules, works closures successful the portion would beryllium unavoidable implicit time.

Perillat said: "If they bash not determine for a European contented per car minimum, past determination volition beryllium significant, massive, delocalisation of the automotive manufacture from Europe to the remainder of the world, let's accidental from Valeo Europe to Valeo China for instance.”

Provost, who took implicit from Luca de Meo earlier this twelvemonth erstwhile the second departed to pb luxury radical Kering, precocious held talks with EU officials successful Brussels.

He said: "The affirmative constituent is that I consciousness they recognize the consciousness of urgency, the request to determination forward, nevertheless I truly get the content that important points are inactive nether discussion.”