Renault and Stellantis CEOs warn EU car market may collapse

Executives from Renault and Stellantis have issued a stark warning about the potential collapse of the EU car market unless the European Commission overhauls its environmental policies. In a joint interview with Le Figaro, John Elkann and Luca de Meo insisted that stringent regulations on carbon emissions have made it impossible to produce affordable small cars. Since 2019, auto sales in the EU have fallen from 18 to 15 million. If current trends continue, the market could shrink by half within the next decade, they said.

The rising cost of budget models is attributed to the industry's shift to electric and hybrid vehicles in order to avoid penalties. The executives called on the European Commission to streamline regulations for small cars and consider emissions over the entire lifecycle of a vehicle, not just during operation. 

De Meo emphasized that it is unrealistic to hold a 3.8-meter-long model to the same standards as a 5.5-meter sedan. European regulations are out of step with actual market demand, Elkann noted. Without intervention, the region risks losing an entire industry in the coming years.