Thursday, September 19, 2024

The automotive sector requires fewer regulations and a better industrial strategy

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The European car industry wants policymakers on the continent to deliver a better industrial strategy, as well as to reduce the pace of new regulations over the next five years, according to Renault’s CEO.

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Otherwise, the sector will find itself in a difficult competitive situation at the global level, Luca De Meo, who is also president of the European Automobile Manufacturers Association (ACEA), explained to Euronews.

These recommendations are part of the association’s “Statement and Roadmap”, which was presented on Wednesday at a press conference in Brussels. Di Meo added that any strategy must cover all steps of green and digital supply chains.

“I think we have a great idea, the Green Deal, and now we have to put it into action,” he said in an interview. He added: “We have to set goals, and we also have to decide who does what in this matter, and who bears responsibility based on what criteria.”

Renault’s CEO is particularly critical of the slow pace with which electric vehicle charging stations are being installed across the European Union.

In his opinion, if Europe wants to keep up with China, it is necessary to double the number of facilities by seven or ten.

“This can’t fall entirely on our shoulders. We can’t do it alone as an auto industry, because it’s as if a hundred years ago they had asked us to control the entire distribution of oil and gas. We wouldn’t do that,” Di Meo said.

“So our job is to make a product and develop the technology, but to do that we need to collaborate with others.”

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The association also took issue with the heavy regulatory burden it faces: currently, the sector faces between eight and nine EU regulations, which will come into force every year until 2030, some of which are contradictory.

Looking ahead to next year, the association expects a slowdown in new car sales compared to 2023, although the share of electric cars will increase significantly.

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