The chairman of the board of directors of Stellantis, John Elkann, and the CEO of Renault, Luca de Meo, have now requested that the European Union adopt more favorable rules for small and more affordable cars, warning that the decline in profitability of these vehicles could force factory closures in Europe.
In a joint interview with the French newspaper “Le Figaro,” the leaders of Stellantis and Renault added that France, Italy, and Spain should be at the forefront of reversing the current situation regarding city cars, as the demand for smaller and more affordable vehicles is greater in these countries.
Without revealing which rules they would like to see implemented, Luca de Meo stated that, “what we are asking for is differentiated regulation for smaller cars. There are many rules designed for larger and more expensive vehicles, which means we cannot manufacture smaller vehicles under acceptable profitability conditions,” said de Meo.
For his part, John Elkann reminded that car sales in the European Union were at disastrous levels, and having specific regulations for smaller cars was a “strategic” issue. “If the trajectory does not change, we will have to make some painful decisions regarding our production base in the next three years,” Elkann said.
Renault and Stellantis are primarily focused on producing low-cost cars in Europe for European consumers, which according to Luca de Meo, is not the case with premium brands like the German BMW, Mercedes, and some brands from the VW group, which are more focused on exports.
For these premium brands “Europe matters, but their priority is export. Over the last 20 years, their logic has dictated market regulations. The result is that European rules mean our cars are becoming increasingly complex, heavier, and more expensive, and most people simply can no longer afford to buy them,” said the CEO of Renault.
