Madar (Rabat) - France and Germany have reached an agreement that could exclude cars manufactured in Morocco from preferential European Union subsidies and public procurement, potentially disadvantaging Renault and Stellantis factories that supply the European market, news site Hespress reported on Thursday, October 29, 2026, citing European auto-industry reporting and a Jacques Delors Institute analysis.
The agreement, announced on October 16, would favour vehicles produced within the EU and certain European partner countries, leaving Morocco and Turkey outside the proposed "Made in Europe" definition, without barring Moroccan-made vehicles from the EU market.
The compromise links European manufacturing preference to the 2035 emissions rules: Germany secured French support for relaxing the target to a 90% reduction, while France won German backing for a narrower definition of European production, according to Agence Europe. It aims to shape talks on the Industrial Accelerator Act proposed by the Commission in March.
Renault runs major plants in Tangier and Casablanca and Stellantis builds vehicles in Kenitra. Guillaume Duval, an adviser to the Jacques Delors Institute, said excluding Morocco and Turkey could undermine Europe's efforts to build competitive production networks close to home against Chinese competition.
