Overview

• Stellantis CEO John Elkann and Renault CEO Luca de Meo warn that factory closures could occur within three years if Europe's auto industry decline continues.
• They attribute rising vehicle costs and declining affordability to stringent EU electrification mandates, with small cars like the Renault Clio particularly affected.
• The cost of the Renault Clio is projected to increase by 40% between 2015 and 2030, with 92.5% of the rise linked to regulatory requirements.
• Executives call for a clear industrial policy and tailored regulations for small vehicles to sustain production and profitability in key markets like Spain, France, and Italy.
• Stellantis's STLA Small platform, confirmed earlier this year for plants in Spain and Italy, highlights ongoing efforts to support small-car manufacturing despite regulatory challenges.