Should Ford decide to support local content regulations and then find answers to the technical questions, it would still have to determine the best way to carry its case to the appropriate government body. And here again, the way was not clear.
Ford definitely did not want to act on its own. It would be much better to act in concert with the other European producers. (Despite the all-American image of the founder and his name, Ford of Europe unquestionably considered itself "European.") Not only was this desirable on general principles, but for one quite specific reason Ford preferred not to lobby the EEC directly. It had recently fought and was currently fighting other battles with the European Commission .. ..
Although Ford preferred to have a common industry position to press on the governmental authorities, there was little likelihood of unanimity among the European producers even on the most basic question of whether local content rules were desirable. General Motors was an almost certain opponent to local content rules despite the fact that it too might welcome relief from Japanese competition. Fiat, Renault, and British Leyland, on the other hand, might be strong allies who could perhaps rally the support of their respective governments. They appeared to have much to gain from local content rules because they had most of their operations in Europe and they purchased most of their components locally.
There were a number of sourcing arrangements, however, which could undermine the support of some of these firms. Japanese cars assembled in Australia were entering the United Kingdom with a certificate of origin from Australia. British Leyland's Acclaim was of questionable origin. Fiat was bringing in "Pandas" from Brazil, and Volkswagen "Beetles" came into Europe from Mexico. Renault had extensive operations in the United States that could alter the company's outlook. And on July 27, 1983, the Wall StreetJournal reported that Fiat was being indicted by the Italian authorities for selling cars made in Spain and Brazil under the guise of Italian manufacture. Fiat denied the charge.
Ford executives believed, nonetheless, that with the exception of GM, Ford was likely to find general support within the industry. In fact, in a 1981 draft paper, the CLCA 1 stated:
The establishment of Japanese motor vehicle manufacturing plants should be subject to the following durable conditions:
- the CIF value of the components not originating from the EEC should not exceed 20 percent of the price ex-works of the vehicle.
- the manufacturing and assembly of mechanical components (engines, gearboxes and drivetrain) should be performed within the EEC.
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