Renault, Stellantis chiefs call for EU rule changes to save small cars

John Elkann who heads Stellantis as Chairman and Luca de Meo who leads Renault as CEO have jointly requested Europe to amend its small car regulations. They issued a dire threat that plant closures throughout Europe could happen if no reform occurs to address shrinking profits from budget-friendly cars.

Elkann and de Meo stressed through their joint interview in Le Figaro that the EU should begin these procedural changes in countries like France Spain and Italy which demonstrate the highest demand for compact vehicles. The industry leaders failed to detail which specific regulations they wanted modified but showed their concern about the inability to maintain small-car production profitability in the existing EU framework.

A specific regulatory framework tailored to smaller vehicles is our primary request. Renault's de Meo explained that numerous restrictive automobile standards tailored to bigger and costly cars prevent manufacturers from producing affordable small cars profitably. Renault and Stellantis maintain 30% European market control through their production of local affordable vehicles for continental consumers.

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De Meo established a distinction between premium German automakers BMW and Mercedes and some Volkswagen Group brands which prioritize export markets above all else. Export-focused manufacturers have dominated European regulatory policies during recent decades thus steering the automotive market toward heavier and more expensive cars that many Europeans cannot afford.

According to Elkann the current EU car sales statistics represent disaster while industry-specific regulations for smaller vehicles serve as a strategic necessity. He warned of potentially severe consequences for their production bases within the next three years if the current trajectory remains unchanged, implying potential plant closures as a painful necessity.