Increased Crime in Automotive Sector: Executives of Stellantis and Renault Voice Concerns over European Industry's Future
Sounding the Alarm
John Elkann, CEO of Stellantis, and Luca de Meo, CEO of Renault, are crying foul, urging the European Union to get its act together and simplify vehicle regulations. They claim these regulations, as they stand now, hamper the production of affordable cars and could lead to long-term production woes in Europe. In a recent interview with Le Figaro, they spilled the beans about their concerns.
"Europe's automotive market has been on a downward spiral for the past five years," Elkann told the publication, adding that the market could be cut in half by 2035 if nothing changes. De Meo echoes the sentiment, saying it's a struggle to sell what Europe wants them to.
"It's impossible to replace current volumes with electric vehicles under these conditions," De Meo warns, pointing out that drastic decisions have to be made within the next three years if the situation doesn't change. Elkann believes the fate of Europe's car industry is hanging in the balance this year.
"If there's a mobilization around a clear political choice, if we create a market and volumes, we're both convinced we can continue to produce in Europe," Elkann adds, addressing France, Italy, and Spain. He notes that the combined buying power of these countries exceeds that of Germany, the traditional automotive powerhouse.
Elkann and De Meo are demanding flexible regulations for smaller cars. In the name of common sense, these regulations should only apply to new models and not to old ones, they argue. They also want a streamlined process for rulemaking, with regulation coming in 'packages' rather than piecemeal. Lastly, they're pushing for a singular platform at the Commission level to streamline the rulemaking process.
The slumping European car market may spell trouble for the long-term future of the industry, with potential plant closures looming over the next few years due to the current regulatory environment. With their demands, Elkann and De Meo are aiming to keep the production of affordable European cars alive and ensure the continued growth of the industry without succumbing to foreign competition from the US and China.
- The CEOs of Stellantis and Renault, John Elkann and Luca de Meo, are urging the European Union to simplify vehicle regulations, as they believe these regulations prevent the production of affordable cars and could cause long-term production issues in Europe.
- Elkann and de Meo emphasize that the European automotive market has been declining for five years and could be halved by 2035 if the regulations remain unchanged.
- De Meo warns that it's impossible to replace current volumes with electric vehicles under the existing conditions, and drastic decisions must be made within the next three years if the situation doesn't improve.
- Elkann thinks the future of Europe's car industry is precarious in 2023 and calls for a mobilization to make a clear political choice, creating a market and volumes to continue producing in Europe.
- To fill the regulatory gaps and avoid foreign competition from countries like the US and China, Elkann and de Meo propose flexible regulations for smaller cars, streamlined rulemaking, and a singular platform at the Commission level for a more efficient rulemaking process, focusing on new models instead of old ones.
