EU's Car Crisis: Urgent Call for Smaller Auto Reforms

Stellantis Chairman John Elkann and Renault CEO Luca de Meo are calling for the EU to implement more favorable regulations for small cars. They argue that current rules favor larger, expensive vehicles, endangering the profitability and future of smaller car manufacturing. France, Italy, and Spain should lead this initiative.

Stellantis Chairman John Elkann and Renault CEO Luca de Meo have issued a strong call to the European Union, urging the bloc to revise regulations in favor of small cars. The automotive leaders warned that if action is not taken, the declining profitability of these vehicles could result in plant closures.

In an interview with French newspaper Le Figaro, they emphasized that France, Italy, and Spain, where demand for smaller, affordable cars remains robust, should spearhead this regulatory change. De Meo highlighted the challenge posed by the current rules that favor larger, more expensive models, affecting the production conditions of smaller vehicles.

Contrasting this with the focus of premium carmakers such as BMW and Mercedes on exports, de Meo argued for a differentiated approach. Elkann added urgency to their appeal, stating that without a regulatory shift, the EU car sales would continue a disastrous trajectory, leading to tough production decisions within three years.

(With inputs from agencies.)