The head of Germany’s influential IG Metall union, Christiane Benner, is advocating for the introduction of local content requirements within the European Union to bolster the competitiveness of European manufacturers In an interview with POLITICO’s Industry & Trade newsletter, Benner argued that preference should be given to European companies in the supply chain She cited the automotive industry as an example, expressing concern that manufacturers from Asia can import complete components for final assembly within Europe, limiting opportunities for European suppliers Benner suggested that quotas could be a mechanism to ensure a greater share of contracts are awarded to European businesses
Benner highlighted the pressure faced by smaller suppliers, noting difficulties accessing credit and maintaining favorable ratings She emphasized the potential impact on employment and called for proactive political intervention
Beyond local content, Benner also urged a more holistic approach to calculating vehicle carbon emissions She proposed factoring in the entire lifecycle of a vehicle – not just tailpipe emissions – suggesting that current calculations may not fully reflect the environmental impact of various technologies Benner advocated for a pragmatic assessment, pointing to the potential of plug-in hybrids and range-extended vehicles utilizing alternative fuels as a route to decarbonization
Finally, Benner championed the concept of “social leasing” designed to make electric vehicle ownership accessible to households with moderate and lower incomes She suggested the use of tax incentives to stimulate demand and urged policymakers to focus on creating supportive frameworks rather than focusing solely on timelines and deadlines, particularly in relation to the planned phase-out of internal combustion engine vehicles starting in 2035