Automotive: Stellantis and Renault bosses raise joint alarm over the fate of European industry

"The European car market has been in decline for five years now."

"The European car market has been in decline for five years now," says John Elkann, president of Stellantis, and "at the current rate, the market could be more than halved" by 2035. "The market is not buying what Europe wants us to sell," adds Luca de Meo, CEO of Renault: "replacing all current volumes with electric vehicles, under these conditions, we will not succeed."

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While Germany is preparing to sacrifice tens of thousands of jobs, car production in France has never been this low in 60 years. And many equipment manufacturers are already being knocked down by a domino effect.

"If the trajectory does not change, we will have to make painful decisions for the production system in the next three years," warned the head of Stellantis, for whom "the fate of the European automotive industry will be decided this year." "Conversely, if there is mobilization around a clear political choice, if we recreate a market and volumes, we are both convinced that we will be able to continue producing in Europe, including in Western Europe," he said.

"All countries in the world with an automobile industry are organizing to protect their market. Except Europe."

"Every country in the world with an automotive industry is organizing to protect its market. Except Europe," worries the Renault boss, in the midst of a trade war and rivalries with the United States and China. "Among European manufacturers, there are two schools of thought," explains Luca de Meo: "that of Stellantis and the Renault group, which together account for 30% of the market, and who want to produce and sell popular cars in Europe and for Europe. And that of the premium brands, for whom Europe is certainly important, but whose priority is export."

"For twenty years, it is their logic that has dictated the regulations" leading to the production of cars that are "ever more complex, ever heavier, ever more expensive," he regrets.

The two men are appealing to France, Italy, and Spain, whose populations "are the buyers" of small cars who "are also the producers" and who "together weigh more than Germany," argues John Elkann.

"What we are asking for is differentiated regulation for small cars," explains the Renault boss, who presents three demands: "One, the regulation should now only apply to new models, not old ones; two, give us rules in 'packages', rather than one every month; and three, we need a one-stop shop at the Commission."