Stellantis NV Chairman John Elkann and Renault CEO Luca De Meo shared a platform at the recent Financial Times Future of the Car summit to call on the EU to take a more flexible approach to emission reduction that would allow car makers to continue to manufacture smaller combustion engine vehicles. 

The two rival bosses had the EU and UK’s 2035 deadline for the end combustion car sales in their sights, arguing that a more flexible approach, rather than a framework of “deadlines and fines” that ultimately makes cars more expensive for the consumer, was required. They called on the EU to simplify regulation to allow for the production of cheaper and more accessible cars. 

Renault CEO Luca De Meo said that the company does not make money on many of the small cars it currently produces and said that further regulation would simply add to the cost of such vehicles and make them unaffordable. He commented, “Small cars still have a purpose and they could actually reboost the automotive market in Europe.”

The theory behind the call is that excessive regulation is making small car production uneconomical for car makers, driving them to produce SUV type vehicles where they can make more profit. At the same time a lack of affordable small new vehicles is keeping older higher emission vehicles on the road. The current approach of zero tailpipe emission requires more of a vehicle life cycle approach and more flexibility when it comes to small ultra low emission petrol engines and hybrids.   

Elkann and De Meo also reiterated that there are no discussions taking place on a merger between their two companies.