John Elkann, chairman of Stellantis, emphasized small cars' foundational role at the FT’s Future of the Car summit:
- Roots and Prosperity: Small cars have historically driven societal prosperity by granting mobility freedom.
- 2025 Deadline: Elkann suggests that 2025 is pivotal for the EU to reassess the relevance of small cars in the modern era.
Renault CEO Luca De Meo highlighted the economic constraints:
- Profit Margins: Current car production methods render small cars less profitable.
- European Market Focus: Unlike competitors prioritizing exports, Renault and Stellantis focus on European sales.
De Meo pointed to unchanged medieval city dimensions, like those in Salamanca or Siena, making large cars impractical. He critiqued the current focus on severe regulations:
- Regulatory Pressure: Costs for medium-sized car production are projected to rise by 20% by 2030 due to strictly enforced deadlines and fines.
- Consumer Impact: These increases are felt by consumers, pushing them to hold onto older cars longer.
Both leaders advocate for legislative shifts towards lower emissions to benefit the industry:
- Embracing Range-Extender Technology: Using electric cars with minor engine assistance or plug-in hybrids could lower emissions without the excessive cost burdens of zero-emission mandates.
- Lifecycle CO2 Reduction: Smaller cars could potentially cut total lifecycle emissions by 75%, according to De Meo.
Lynn Calder of Ineos echoed the criticism of a narrow technological focus. Amidst international tariff pressures, uneven EV sales, and rising Chinese competition, Stellantis and Renault urge Europe to determine its automotive future:
- A Strategic Decision: Europe’s key choice lies in whether it aims to manufacture or import cars.
Stellantis and Renault propose a more flexible European regulatory approach to safeguard the small car's future, advocating for legislative reform centered on lower emissions rather than zero emissions. This could stabilize the market for small cars and maintain Europe's automotive industry vitality.
