In his letter, Luca de Meo, chief executive of Renault, warns of the rise of China’s car industry and underlines the urgent need for Europe to protect its low-emission mobility ecosystem. It highlights the competitiveness of Chinese cars in terms of cost and manufacturing time, as well as concerns over raw material shortages, employment and the energy transition. De Meo is calling for swift action to protect the European car industry and ensure its global competitiveness.

According to Luca de Meo, a disturbing reality

In a letter addressed to key European leaders, Luca de Meo, CEO of Renault, outlines his vision for the future of the European automotive industry. In this correspondence, he emphasizes differences in the strategies of Europe, the United States and China, while highlighting the urgent need to create and protect a low-carbon mobility ecosystem. De Meo reinforces the need for this action by pointing to a disturbing reality: heyday of the Chinese automobile industry. He notes that Chinese cars, in addition to being cheaper, also take less time to manufacture. Indeed, for for the consumer, the cost difference is on average €7,000 between a C-segment car “made in China” and its European equivalent, or about 25% of the total cost. In addition, the development cycle in China is much shorter at 1.5 to 2 years, while in Europe it is 3 to 5 years.

Increasing competition from China

This increased competition from China also leads to dominance in the export of electric vehicles, with a market share of 35% last year. Added to this Chinese escalation are other challenges, such as shortages of raw materials, employment and the regulatory framework. Luca De Meo emphasizes that the health of the European economic engine is at stake, as well as more than 13 million jobs. In this context, it is imperative to act quickly and strategically to protect the European automotive industry and ensure its competitiveness on the world stage.
This open letter from Luca de Meo offers insight into the challenges and opportunities facing the European automotive industry. Emphasizing the need for collective action and a clear vision, it encourages deep reflection on the future of mobility in Europe. In his letter, the boss made several recommendations, including the promotion of affordable electric cars.