What exactly counts as a car 'Made in Europe'? Brussels is now writing the answer into law. The European Commission's Industrial Accelerator Act, presented on 4 March 2026, sets out the criteria for when a vehicle can be considered European-made — and Mercedes-Benz chief Ola Källenius is already warning that cars built to that standard could become more expensive.
The timing is no coincidence. With US tariffs weighing on cars exported from the European Union, discussions are under way with Washington to soften the impact, and tariffs and production choices are increasingly linked. The real risk for European factories is that tighter origin rules and transatlantic trade barriers combine to push manufacturers to rethink where they build — and for which market.
The industry has been lobbying hard over where the boundary should sit. In early July, the European Automobile Manufacturers' Association (ACEA) pleaded the case for two countries where numerous manufacturers are present — Renault and Stellantis among them in Morocco. How strictly the Commission's new criteria treat production hubs beyond the EU's borders will shape sourcing decisions, and price lists, for years to come.
The EU's other great policy fight — the 2035 combustion-engine ban — is meanwhile far from settled. Following the softening of the CO2 rulebook that EastAutoNews reported earlier, some member states now oppose a German-French deal to effectively end the 2035 ban, with Ireland, which is leading the negotiations, floating a compromise that would limit the relief for automakers. In the European Parliament, committee lawmakers have backed lower 2035 targets for cars and vans, with credits for low-carbon steel adding another route to the emissions goals — a clear sign that industrial and climate policy are being stitched together in Brussels.
For dealers and buyers, the practical effect of all this rulemaking is uncertainty over prices and availability — all the more reason to compare offers across the European market before committing to a purchase. Readers looking for a vehicle can find sensational cars at sensational conditions at WorldTrader24, Europe's marketplace with over 70,000 vehicles, from combustion models whose future is being renegotiated to electrified alternatives.
