The president of the European Manufacturers’ Association and head of Renault, Luca de Meo, is asking the European Union for more flexibility in implementing the timetable for reducing CO emissions.2.
“We need to be given some flexibility.” The head of the Renault group and president of the European Automobile Manufacturers Association (ACEA), Luca de Meo, expressed concern about the consequences of the slowdown in sales of electric cars in Europe this Saturday, September 7, on France Inter. According to him, European car manufacturers risk 15 billion euros in fines if they do not comply with EU rules on emissions. “Simply setting deadlines and fines without having the possibility of making this more flexible is very dangerous.”he pleaded.
In August, electric vehicles accounted for only 12.5% of the European car market, with a 10.8% drop in sales over the year. To meet CO emissions standards2 calculated as an average over all cars sold, manufacturers will have to reduce their production by “more than 2.5 million vehicles” to avoid being sanctioned, warned Luca de Meo. The reason: an electric vehicle can compensate for four thermal cars.
“We are preparing for 2025 now because we are taking orders for the cars that we will deliver. And there, according to our calculations, if electric remains at today’s level, the European industry will perhaps have to pay a fine of 15 billion euros or give up the production of more than 2.5 million.” units, he explained.
Also read“We had to anticipate the recharges”: between high prices and waiting at the terminals, the “crash test” of the holiday journey for electric motorists
Prices too high
The Renault leader also stressed the importance of the electricity market for European industrial battery manufacturing projects. “If electric cars don’t sell, these projects will have difficulties”he warned.
To explain the lack of vigor in the market, Luca de Meo pointed to the still high prices, but also to the slow installation of charging stations and “uncertainty” on purchase subsidies, which were removed in Germany last December, leading to a drastic drop in sales. On this aid, “We need stability, visibility” et “of a certain coherence”argued the Renault boss, while the 2025 French budget could see cuts.
Symbol of the crisis facing the European automobile industry, under strong pressure from Chinese competition: the largest European manufacturer Volkswagen has announced that it is preparing an unprecedented savings plan that could lead to factory closures in Germany. A fate that should spare Renault, having already made the savings, assures Luca de Meo: “A few years ago we had to go on a very strict diet” by reducing production capacity “of more than a million vehicles” more “the context is very very complicated”.
