Stellantis and Renault Urge Europe for Immediate Reforms to Maintain Automotive Influence

Stellantis Chairman John Elkann and Renault CEO Luca de Meo believe that Europe risks losing its status as a leading manufacturer unless swift reforms are implemented. They have therefore called on EU authorities for urgent changes.

Both executives are advocating for differentiated regulations for small cars, enabling countries like Spain, Italy, and France to compete in the automotive industry as production leaders, rather than merely being a market.

In a joint interview with 'Le Figaro', reported by Europa Press, they explained that these three countries have the largest production and consumer markets in Europe. Therefore, fostering their industry should be a priority, which requires regulatory changes within the European Union.

According to De Meo, there are currently too many regulations designed for larger, more expensive cars, which prevent the profitable production of small cars. He cited the example of 'kei cars', the small and profitable Japanese vehicles that have captured a significant market share thanks to favourable policies from Asian authorities.

This is one of the reforms that automotive industry leaders hope will soon be solidified in the European Commission's simplification plan, although they lament that, for now, it remains mere rhetoric without tangible results.

In this context, Elkann used the interview to describe Brussels' inability to swiftly transition from words to actions as "bewildering". He also pointed out the existing gap between supply and demand, as the market does not purchase what Europe wants manufacturers to sell.

"What we need is a goal, speed in decision-making, and certainty. We are not asking for help, just to be allowed to work, innovate, and provide people with the cleanest and most affordable vehicles they want and need!" explained the Stellantis leader.

If action is not taken soon, even within this year, the executives believe that the Chinese market will surpass those of Europe and the United States combined. "Europe must decide whether it wants to remain an automotive industry territory or merely a market. In five years, at this rate of decline, it will be too late," they assert.

Consequently, they warned that the automotive industry will be forced to make difficult decisions regarding the production system in the next three years. "Conversely, if there is mobilisation around a clear political decision, if we rebuild the market and volumes, we are both convinced that we can continue producing in Europe, including Western Europe," they pointed out.