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GENEVA MS'24: LUCA DE MEO DEFENDS AN "AIRBUS OF THE SMALL ELECTRIC CAR"
To succeed in the climate transition and bring down the price of electric cars, the Renault boss is pleading for alliances between manufacturers and for a European regulatory shock.
During the 2024 Geneva Motor Show, Luca de Meo, CEO of Renault, emphasized the significance of forging partnerships between automakers and implementing a European regulatory overhaul to aid the climate transition and decrease the costs of electric vehicles. Renault captured the spotlight, especially with its new electric R5, at a show notable for its reduced scale and the absence of other major European manufacturers.
De Meo's vision includes the formation of an "Airbus for the small electric car," a collaborative effort aimed at producing affordable electric vehicles. He revealed ongoing preliminary discussions with Volkswagen about sharing a platform for vehicles priced under €20,000, drawing parallels to a previous collaboration between Peugeot and Toyota on compact cars.
Moreover, de Meo advocated for a multi-tiered approach to cost reduction. This includes encouraging auto parts suppliers to join forces with Horse, Renault's subsidiary focused on combustion engines and hybrids created with Geely and its subsidiary Volvo Cars. The ultimate goal is to make electric vehicles more accessible and to ensure the automotive industry meets its zero-emissions targets by 2035.
A significant part of de Meo's strategy involves urging the European Commission and national governments to ease certain regulations. He suggests that electric vehicles, particularly those used in urban areas, could be made lighter and less dependent on large batteries if not bound by the same stringent equipment requirements as combustion vehicles. Additionally, de Meo questions the exemption of corporate fleets from the Corporate Average Fuel Economy (CAFE) standards, proposing that such fleets should also adhere to emissions limits.
Lastly, de Meo proposes reducing VAT on lighter electric models that align closely with the goals of the energy transition. This, he argues, would provide a simpler and more direct financial incentive than current schemes, supporting both the Green Deal and the automotive industry's shift towards sustainability.
’ The kei car is a perfect example of the kind of things we should be able to do, said Luca de Meo, Renault Group CEO and ACEA president.’
