The new CEO of Renault continues where Luca de Meo left off: “It is all the European industrial logic that is wrong”

Luca de Meo was always very critical of the European Union regarding the automotive industry. The Italian leader, who resigned from his position as CEO of the Renault Group last June, believed that Europe was rushing by forcing the transition to electric cars, creating additional problems along the way.

Now the great French manufacturer is led by François Provost, who has already indicated that he would bet on continuity. And, at least regarding his opinion on European policies, that is how it is being.

“In Spain, jobs are secured for the coming years”

The European system is flawed from its foundation

The new CEO of the Renault Group believes that the control Europe is exerting over the automotive industry fails from the ground up and, as Luca de Meo pointed out several times, this is generating additional problems that put manufacturers at risk.

“It is all the industrial logic in Europe that is wrong,” Provost begins pointing out. “We have a tsunami of regulation, whether it is decarbonization or any other regulation. Because of this, car prices are very high for people. As a result, we have an unprecedented growth in the average age of the car fleet in Europe.”

Provost starts strong, pointing out the high prices of cars —whether electric or not— and stating that this influences the aging of the vehicle fleet, which in Spain is already around 15 years on average. But he does not stop there.

“For this reason, the European market is the only one in the world that has not recovered after the pandemic”, he adds. “Europe needs a more realistic logic that allows car prices to be affordable for European citizens.”

Indirectly, Provost points to the two flagship measures of the EU: the Euro 7 regulation and the prohibition of selling new cars with combustion engines in 2035. And he assures that, if Europe were more realistic, car prices would drop and both the economy and the environment would benefit from it.

“This would lead to an increase in GDP and we would accelerate decarbonization. We need to find another logic that constitutes a better balance for decarbonization, but also for technology and for employment,” Provost states.

Renault bets on lowering prices

Already on a more local level, Provost has anticipated the guidelines that will govern the Renault Group in the short, medium, and long term. The French leader believes that “the success of the Renaulution strategy is based on having a strong line in Europe”.

And he adds that his priority “is to renew a successful line in Europe. We need to reduce the cost of electric cars to compete with Chinese manufacturers, but also to allow Europeans to buy electric cars.”

One of the keys to this objective is the cost of batteries, the element that most defines the price of electric cars. Provost advances that the Renault Group is “on track to reduce battery costs by 40%”.

“Next year we will have a second battery with LFP (lithium iron phosphate) chemistry in every existing car of the Renaulution strategy. All developed in less than 18 months, just like our Chinese competitors,” he adds.

Finally, the new CEO of the Renault Group briefly evaluates the strategy of the French manufacturer for Spain, a country where it has always had a strong presence, but where uncertainty has arisen due to the transition to electric cars.

“In Spain, jobs are secured for the coming years.” But the best way to ensure jobs in Spain, as in any other country, is to continue working on competitiveness,” concludes the French leader.

Fuente: El Español