France Urges Stellantis and Renault to Prioritize Local Suppliers to Safeguard Industrial Sovereignty

On May 17, French Economy Minister Roland Lescure stated that Stellantis and Renault should prioritize European suppliers in automotive parts procurement to safeguard local jobs and retain critical technological capabilities. He emphasized that industrial sovereignty requires collective efforts and urged both automakers to implement a "Europe-first" principle. The European Union is currently drafting new regulations for the automotive sector, with French President Emmanuel Macron backing legislation aimed at boosting local production capacity for new-energy vehicles in Europe. Meanwhile, several Chinese automakers are circumventing EU import tariffs and increasingly stringent regulatory policies by building new plants in Europe or taking over idle local facilities. Stellantis has recently advanced its business restructuring and entered into partnerships with two Chinese companies, including Leapmotor. Under this collaboration, Leapmotor will utilize Stellantis’ idle plant in Spain, with plans to expand joint procurement. A French union noted that Stellantis’ numerous idle factories across Europe are expected to host more Sino-European joint ventures, potentially impacting local technical jobs and supply chains. Renault has indicated it currently has no surplus idle plants available for cooperation with Chinese automakers. However, CEO François Provost is increasingly relying on Chinese suppliers to reduce vehicle manufacturing costs. The French government holds a 15% stake in Renault. Volkswagen has also expressed willingness to open its European production capacity to Chinese automakers to lower costs and optimize its footprint. Chinese brands such as BYD and XPeng are actively considering establishing manufacturing facilities in Europe. Lescure added that the green energy transition will continue to generate employment opportunities in France, noting that several French factories have resumed operations. Although the pace of recovery has fallen short of expectations, the overall trend shows signs of improvement.