Overview

• John Elkann of Stellantis and Luca de Meo of Renault highlight 2025 as a critical year for Europe's automotive industry, with China set to outproduce Europe and the U.S. combined.
• European vehicle sales have dropped from 18 million in 2019 to 15 million in 2024, making it the only major market not to recover post-Covid.
• Executives criticize EU regulations for disproportionately increasing costs for small cars, eroding profitability and market accessibility.
• They advocate for technology-neutral decarbonization policies, emphasizing lifecycle emissions over the current 'tank-to-wheel' approach.
• A call is made for streamlined EU governance, including a single regulatory body and differentiated rules for small vehicles, to prevent further market contraction and industrial decline.