Türkiye has been a destination for investment by European automakers for 55 years. Total investment over the past 55 years has reached 21 billion euros.
Excluding Türkiye from stricter “Made in EU” auto rules, backed by France and Germany to counter Chinese competition, could raise costs, disrupt supply chains and erode Europe’s competitive edge, industry representatives have warned.
French President Emmanuel Macron’s plan to protect the European automotive industry against China has sparked debate. Macron and German Chancellor Friedrich Merz agreed to lower the 2035 emissions target from 100 percent to 90 percent and tighten “Made in EU” measures. Under the plan, internal combustion vehicles would still be allowed to be sold after 2035, while EU production requirements in public procurement would be strengthened and vehicles would be required to contain 70 percent European-origin parts.
However, manufacturers such as Toyota, Ford and Hyundai warn that excluding trade partners such as Türkiye would raise costs and weaken both supply chains and Europe’s competitiveness.
Yoshihiro Nakata, President and CEO of Toyota Motor Europe, said in Brussels that Europe should adopt a “Made with Europe” approach rather than “Made in Europe.” Nakata said that including reliable trade partners such as Türkiye, the U.K. and Japan would expand Europe’s production and market scale to around 31 million vehicles, which is necessary for global competitiveness.
Toyota also proposed increasing the European-origin content requirement to 70 percent after a three-year transition period and called for Customs Union partners such as Türkiye to remain within the framework.
Jim Baumbick, President of Ford Europe, also objected to the proposed rules. Baumbick said production in Türkiye and the U.K. should be evaluated together with factories inside the EU.
“Made in Europe should be measured by where value is created, not where the last bolt is tightened,” he said. Using the electric Ford Transit Custom produced in Türkiye as an example, Baumbick noted that the vehicle is engineered in the U.K. and Germany, its electric motor is produced in the U.K. and its battery in the EU. More than half of the vehicle’s component value originates from EU countries, he said.
“By any economic measure, this is a European vehicle,” Baumbick said, warning that excluding Türkiye would also weaken manufacturing inside the EU.
Xavier Martinet, CEO of Hyundai Europe, previously said Türkiye should be treated fairly and included in the “Made in EU” process.
“If Türkiye is not included, we may have to look at alternative scenarios. But I think that would create a lose-lose situation for everyone. If some vehicles that can be produced in Türkiye have to be produced in Europe, they will certainly become more expensive. In the end, if customers can no longer afford to buy certain vehicles because they have become too expensive, then Europe also loses,” Martinet said.
The compromise between France and Germany marked a turning point in discussions over Europe’s protectionist legislation. However, there is still no final European Union decision. If Türkiye is left outside the framework, industry representatives say the cost of the protective wall Europe wants to build against China could ultimately be borne by European consumers.
Kâzım Eryılmaz, board member of the Automotive Suppliers Association of Türkiye (TAYSAD), said Europe has a legitimate interest in protecting its industry from China but warned that excluding Türkiye would also hurt Europe.
“Europe’s automotive industry does not consist only of EU countries. Türkiye has been an important part of this ecosystem for half a century. A regulation aimed at improving Europe’s competitiveness should not weaken the existing production ecosystem,” he said.
“Türkiye offers not only geographic proximity but also cost advantages, quality, engineering capability, flexible production and logistics benefits. If Europe seeks to strengthen its competitiveness against China while disadvantaging integrated production partners such as Türkiye, it could increase costs and supply risks for its own industry. While trying to escape China, they will be hit by hail if they exclude Türkiye,” Eryılmaz said.
Last year, the EU exported 812,000 cars worth 18.8 billion euros to Türkiye, while Türkiye exported 798,000 vehicles worth 18.2 billion euros to the EU. Total two-way automotive trade reached 37 billion euros. Europe accounts for 73.7 percent of Türkiye’s automotive exports, while EU-origin vehicles represent 73 percent of Türkiye’s imported car market. Automotive products account for 26 percent of total Türkiye-EU trade.
