AUTONEWS

Renault, Stellantis bosses urge EU to adopt more favourable rules for small cars

Renault CEO Luca de Meo has urged the European Union to adopt more favourable rules for small cars, warning that falling profitability for small cars could force companies to close factories.

In a joint interview with the French newspaper Le Figaro, Stellantis chief John Elkann and Luca de Meo added that France, Italy and Spain should lead the effort because demand for smaller, more affordable cars is highest in those countries. They did not give details about the rules they would like to apply to small cars, Jutarnji.hr reports.

“We are asking for differentiated regulation for smaller cars. There are too many rules designed for larger and more expensive cars, which means we cannot produce smaller cars in acceptable profitability conditions,” de Meo said.

He added that Renault and Stellantis, which have a combined market share of 30 percent in Europe, are primarily focused on producing affordable cars in Europe, for European consumers. But premium carmakers, such as Germany’s BMW, Mercedes and some Volkswagen brands, are more export-oriented, de Meo said.

“For them, Europe is important, but their priority is exports. For the last 20 years, their logic has dictated market regulations. The result is that European rules mean that our cars are increasingly complex, increasingly heavy, increasingly expensive and most people simply can’t afford them anymore,” said the Renault chief executive.

Elkann, stressing that car sales in the EU are at catastrophic levels, said that special regulations for smaller cars were a “strategic” issue. “At this rate, if the direction doesn’t change, we will have to make some painful decisions for our production base in the next three years,” Elkann said.

Antonews