Renault CEO Luca de Meo has penned a compelling open letter to the European continent ahead of the upcoming European Parliament elections, highlighting the challenges and opportunities facing the automotive industry. In his address, de Meo emphasizes the need for the industry to decarbonize while embracing technological advancements that are reshaping the sector.
De Meo expresses concern that European automakers are at a disadvantage compared to their counterparts in China and the U.S., citing significant investments in the Chinese auto sector and tax advantages for American-made electric vehicles (EVs). He argues that stringent environmental regulations in Europe are further hindering the competitiveness of European car companies.
“The purpose of this regulatory burden is to make Europe a champion of environmental protection, in the hope that this will contribute to social progress at a global level,” de Meo writes. “The problem is that the other trading blocks are slow to follow suit, and this is having a negative impact on the competitive performance of European business.”
To address these challenges, de Meo proposes a six-point plan. First, he calls for the development of an industrial strategy for the business sector, with a focus on the automotive industry. Second, he advocates for collaborative efforts between automakers, scientists, unions, and NGOs to develop this strategy, similar to the support China has provided to its auto and battery makers.
His third point involves establishing a new regulatory body to oversee the implementation of regulations impacting automakers. De Meo also stresses the importance of increasing drivers’ access to green energy and developing Europe’s expertise in software and raw materials for vehicles.
Furthermore, de Meo suggests that the EU should support the automotive industry with a strategy that combines elements of the approaches used in the U.S. and China. He emphasizes the need for a broader definition of green technology beyond just EVs, including e-fuels and hydrogen. Additionally, he calls for greater investment in small, light, and affordable vehicles, which he believes have been marginalized by safety and emissions regulations.
In his closing remarks, de Meo highlights the importance of collaboration among European automakers, citing the success of Airbus as an example. He calls for standardized vehicle-to-infrastructure technology and the sharing of software-defined vehicle components among automakers to drive innovation and competitiveness.
“I believe that we can achieve our aims through joint efforts and partnerships between the public and private sectors,” de Meo concludes. “By stepping up cooperative initiatives, we will set our industry on the road to revival.”
The upcoming European Parliament elections are poised to shape the future of the automotive industry in Europe, and de Meo’s open letter serves as a rallying cry for industry stakeholders and policymakers to work together towards a sustainable and competitive future.
