Have European rules raised the price of small cars?
In Tuesday Le Figaro, Renault boss, Luca de Meo, released the calculator: “Between 2015 and 2030, the cost of a Clio will have increased by 40 %,” he points out. The reason, according to him, is attributable “to 92.5 % to regulations”. “European regulations in terms of depollution and security have raised the prices,” agrees Clément Dupont-Roc, strategy director of C-Ways. “And for a car at 15,000 euros, it is much more, in proportion, than for an automobile at 40,000”. “Other price increase factors exist,” adds Flavien Neuvy, director of the Cetelem observatory. The first is inflation on materials and energy and another, more the responsibility of manufacturers, is the tendency to move upmarket in terms of equipment to have stronger margins, even on city cars ”.
In this same article, John Elkann, the president of Stellantis, says that the Fiat 500 and R5 have like “spent weeks in the Muscu room!” As their size has increased. An effect of regulations? “Yes, because for small cars, compactness is really something that we try to keep as much as possible. However, you only have to see the doors: they have extended to bring in safety organs, ”says Clément Dupont-Roc.
Should we simplify the regulations to offer cheaper small cars?
Luca de Meo castigates the latest GSR2 standard: “Is it absolutely necessary to assist in line freelance in cars that spend 95 % of their time in town?” He questions. For Clément Dupont-Roc, it could be appropriate, as desired by the Renault boss, to build a market segment between the “Light Motorized Quadricycle of 450 kg at 11,000 euros and the electric car from one ton to 20,000. This new category could be subject to reduced standards on safety, for prices of 15-16,000 euros”. The expert in C-Ways also considers that “the only way to bring European industry back to foremost production levels is to make cars more affordable”. “And if we want, in town, a softer mobility, we may have to change certain rules,” abounds Flavien Neuvy. While there, people keep their car, the rolling park is aging and is therefore more polluting ”.
Can small cars take out the European car industry, rather than German premium cars?
The two bosses of Renault and Stellantis note a cleavage between their two groups, which sell many small “popular” cars, especially in France, Italy and Spain, and the German manufacturers with their “premium” cars, which are very exported. “As the European Commission is dominated by the Germans, all the regulations put in place have been to promote sales of their manufacturers,” said Clément Dupont-Roc. How long will Volkswagen or Audi are surviving in China and the United States? “Rather than burning money there, perhaps they would do better to invest so as not to be eaten in Europe,” emphasizes Clément Dupont-Roc. De Meo and Elkann have understood this and are more inclined to build a European industry for Europe and not for export ”.
