6 May | Euro

Renault and Stellantis CEOs warn EU car market may collapse

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.

Elena Dorokhina MarketCheese
Brent sell
Period: 01.08.2025 Expectation: 250 pips
Brent crude caught between trade talk uncertainty and OPEC+ supply pressures
25 July 2025 45
Period: 30.07.2025 Expectation: 800 pips
AUDCAD enters correction after failed test of 0.9 level
25 July 2025 30
Period: 31.10.2025 Expectation: 15000 pips
High time to sell Ethereum. $2,800 target per coin is in sight
25 July 2025 45
Period: 01.08.2025 Expectation: 1700 pips
GBPUSD correcting before another growth wave
25 July 2025 40
Period: 30.07.2025 Expectation: 10700 pips
ETHUSD rebounds toward $3,740 after correction
24 July 2025 70
Period: 29.08.2025 Expectation: 3000 pips
Anticipating inevitable SPX correction
24 July 2025 57
Go to forecasts