MILAN, Italy: Europe's three largest automakers have called on the European Union to adopt simpler "Made in Europe" rules and stronger incentives to boost local vehicle production and strengthen the bloc's automotive supply chains.

Volkswagen, Stellantis, and Renault, which together account for about 60 percent of Europe's car production, outlined their proposals in a joint letter sent to members of the European Parliament.

The automakers urged the EU to require that 70 percent of the value of vehicles sold within the bloc be sourced from the 27-member union. The proposal would cover the entire value chain, from engineering and development to manufacturing.

The European Union is currently considering a broader "Made in Europe" framework as part of its industrial strategy during the transition to electric vehicles.

Although no final vehicle-specific regime has been adopted, policymakers are examining local content requirements, state support measures, and incentives tied to regional production to strengthen supply chains and reduce dependence on imports.

In their letter, the companies said they remained committed to maintaining a strong manufacturing presence in Europe but argued that doing so would require a more practical regulatory environment.

"European automakers face an unprecedented challenge to their competitiveness due to significant technology gaps in strategic areas, intense global competitive pressure, and persistently high energy, manufacturing, and regulatory costs," they said.

The proposal builds on earlier calls from Volkswagen and Stellantis for the EU to support the region's automotive sector through incentives and preferential treatment for locally produced electric vehicles.

The automakers said Europe's market remains well below pre-pandemic levels, with annual vehicle sales running about three million units below 2019 volumes. They said the weak demand environment highlighted the need for additional policy support.

The companies called for measures to encourage manufacturing within Europe, including targeted support for battery production and greater regulatory flexibility for smaller vehicles. They argued that such measures would help make electric vehicles more affordable while strengthening domestic supply chains.

"We want to offer clean, affordable, technologically cutting-edge cars to Europe's middle class," they said.

The automakers pointed out that imports currently account for about 26 percent of the EU car market. "Europe is not closing itself off. Europe only stops the trend of further outsourcing industrial production to third countries," they said.