(By Guancha Observer Network, Zhang Jiadong, edited by Gao Shen)

According to a report on June 12 local time by European Automotive News, John Elkann, Chairman of Stellantis, called for cooperation among major European car manufacturing countries to formulate new regulations during an event meeting that day, in order to help reduce the production costs of small cars.

John Elkann, Chairman of Stellantis (right), European Automotive News

He said, "It is important that the EU and major automotive producing countries such as Germany, France, Italy, and Spain truly realize how to use intelligent new regulations. If Japan can have light vehicles with a 40% market share, then there is no reason why Europe cannot have electric vehicles."

The discontinued gasoline version of Fiat 500, European Automotive News

Elkann referred to small cars as those similar to Japan's K-Cars, which are small, environmentally friendly, and affordable. These cars typically sell for less than 10,000 euros.

He said that small cars like the Fiat 500 were once core products that European automakers excelled at, but increasingly stringent automotive regulations in Europe, such as increased weight and cost, are making these vehicles unprofitable. "By 2030, Europe will face over 120 new regulations. If you look at our engineers, more than 25% of them are only responsible for compliance work and thus do not create any value."

He also suggested that Europe learn from Japan, where lightweight and low-cost K-Cars have long occupied a significant market share. He stated that Europe could develop its own similar E-Car electric vehicles.

Citroën Ami, Stellantis official website

Currently, Stellantis has produced electric microcars in Europe, including Citroën Ami, Opel Rocks-e, and Fiat Topolino. Sales of tens of thousands of units indicate that these affordable electric vehicles have broad potential in the European market.

However, in Europe where traffic regulations are strictly graded, models like Ami are speed-limited to 50 km/h and cannot be driven on highways or major secondary roads.

Elkann’s appeal was made shortly after Antonio Filosa took office as the new CEO of Stellantis. This new CEO recently stated that as long as the "energy equation" is taken into account, Stellantis is committed to providing the cars customers want.

Nissan Sakura, European Automotive News

In line with Elkann's thinking is Luca de Meo, CEO of Renault Group. Last year, Luca expressed in an open letter to EU lawmakers that European regulations have negatively impacted the profitability of the small car market, with sales declining by 40% over 20 years. To find solutions, Europe should draw lessons from the success of Japan's K-Cars.

This May, Luca further urged the EU to adopt more favorable regulations for small cars and warned that without change, the decline in profitability of small cars might lead to factory closures. "What we are asking for is differentiated regulation for small cars. There are too many rules targeting large and expensive vehicles, meaning we cannot produce small cars under acceptable profit conditions."

A research group in France stated in a study that EU regulators should allow automobile manufacturers to sell small cars in Europe. Researchers said that affordable and sustainable electric vehicles will help European automakers compete with Chinese automakers and encourage supplier innovation.

Notably, European automakers' general call to relax regulations on small cars coincides with the final stage of China-EU electric vehicle tariff negotiations.

According to current negotiation progress, both sides may set a minimum price for Chinese electric vehicles in Europe to replace the EU's unilateral trade barriers of increasing tariffs.

The popular small electric vehicle, Zero Auto T03, in Europe, Getty Images

However, Cao Li, Vice President of Zero Auto, said, "Committing to a minimum price is not beneficial for small cars." Currently, Zero Auto's small electric vehicle T03, launched in Europe through Stellantis' dealership network with a starting price of 18,900 euros, falls within the range of small cars mentioned by European automaker leaders. But Cao Li believes that the minimum price that may reach consensus between China and Europe will far exceed the starting price of this model, thereby hindering the introduction of Chinese small cars to Europe.

This article is an exclusive contribution by Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7515634497342423589/

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