"The prosperity of our continent is at stake." This is the last sentence of the extensive letter on the occasion of the June elections to the European Parliament that the CEO of Renault, Luca de Meo, published this Tuesday to warn of the risks for the European automobile industry of the emergence of vehicles Chinese. The European automotive industry is "threatened" by new competitors, warns the manager.
In the letter, De Meo delves into some considerations already mentioned in previous speeches, but he does so with a dedication unprecedented to date. Over 20 pages, he details the Chinese offensive and lists a wide variety of data to contain it.
The current moment is characterized, he says, by China's "rapid advance" in the electric car market thanks to its "huge domestic market" and the Asian country's strategic planning. Last year, about 35% of electric vehicles exported worldwide were Chinese, while European imports of these products have quintupled in recent years. Chinese brands MG and BYD were the largest vehicle exporters at the beginning of last year.
His diagnosis also consists of the fact that Europe is at a "disadvantage" compared to the United States, which "incentivizes" its companies, and China, which plans for the long term. Meanwhile, Europe is dedicated to "regulating", and the result is that its vehicles are now comparatively more expensive. The production cost of a Chinese electric car is about 25% lower than another European one, he indicates.
Throughout the 20 pages of the letter, De Meo recalls that the European automotive industry employs 13 million people and is one of the most innovative activities on the continent. In terms of tax revenue alone, it contributes around €392 billion a year.
However, decarbonization requires manufacturers to invest 252 billion in just three years without guaranteeing success, in view of the "counterproductive" proliferation of standards. "A real accumulation of norms and rules is being generated," which "penalizes the competitiveness of companies."
The delay in the automotive industry, he says, has already generated a "complicated equation" in which it is no longer possible to "close the doors" to Chinese companies. It would be "the worst strategy" because Chinese manufacturers "are a generation ahead" and it is now Europe that must learn from them.
Among the measures it demands is the creation of a European industrial strategy that follows "the Airbus model", capable of bringing together projects to join forces. It also calls for rebuilding the supply capacity of raw materials and electronic components.
Regarding the great strategy of decarbonization of the EU economy, he says not to question the Green Deal, but to "rethink the conditions" under which it is applied. According to him, we should opt for technological neutrality, instead of promoting a single decarbonization model.
Other measures have to do with involving the 200 largest cities in Europe in a joint mobility plan, creating a kind of industrial "League of Champions" through incentives for the best companies, identifying green economic zones, promoting small electric vehicles and unifying battery manufacturing.
