Rising Crimes in Auto Sector: Warnings Issued by CEOs of Stellantis and Renault Regarding the Future of European Automotive Industry
Sound the Alarm! European Union, It's Time to Act
John Elkann, CEO of Stellantis, and Luca de Meo, CEO of Renault, have raised the alarm about the European Union's regulations. They believe these regulations are hampering the production of affordable vehicles and could jeopardize future manufacturing within Europe, according to their joint interview with Le Figaro published on May 5.
"The European automotive market has been heading south for the past five years," Elkann says, fearing that the market could shrink by more than half by 2035 at the current rate. De Meo echoes this sentiment, stating, "We can't sell what Europe wants us to produce."
The Market Ain'tBitin'
De Meo agrees that the market isn't interested in what Europe is offering. The extant volumes can't be replaced with electric vehicles under the current conditions, he warns. Elkann and de Meo foresee tough decisions for the manufacturing apparatus within the next three years if the trajectory stays the same. "The future of the European automotive industry hangs in the balance this year," Elkann states.
Size Matters, Except in Europe
If there's a united political push and the creation of a substantial market, Elkann believes both CEOs can continue making cars in Europe, including in Western Europe. However, he expresses concern that, while other nations protect their automotive industries, Europe remains indifferent. De Meo shares this worry, caught in the crossfire of commercial wars and rivalries with countries like the U.S. and China.
Small Cars, Big Impact
Elkann appeals to the populations of France, Italy, and Spain—consumers and producers of small cars. Their collective weight exceeds Germany, he argues. The CEOs of Renault and Stellantis request differentiated regulations for small cars. They seek changes in three primary areas:
- Regulations should only apply to new models, not existing ones.
- Rules should be packaged, not spoon-fed one at a time.
- A single window at the Commission would facilitate communication and compliance.
These regulatory changes are crucial to maintain profitable production of small cars in Europe, as both Renault and Stellantis form significant parts of the European automotive market. The two CEOs stress that the fate of the industry could be at stake this year if the European Union doesn't act swiftly.
In the joint interview with Le Figaro, John Elkann and Luca de Meo emphasized their concern over the European Union's regulations, stating that they are detrimental to the production of affordable vehicles in Europe. They assert that the future of the European automotive industry is precarious and hinges on the EU's swift action this year, particularly in creating differentiated regulations for small cars. Elkann and de Meo advocate for unified regulations that would apply only to new models, be packaged instead of issued one at a time, and simplified communication and compliance through a single window at the Commission. This is crucial to ensure profitable production of small cars in Europe and play a significant role in maintaining the stability of the European automotive market.
