ROME – “Democratize the price of the electric car”, continue to produce hybrids until 2035 and introduce incentives also for used cars. This is the scheme of Luca De Meo, the Italian manager at the top of Renault, to revive the automobile industry and above all the European markets.
The main theme, of course, is the environmental one. We are on the eve of European decisions on cutting emissions and therefore all the major manufacturers are grappling with new strategies. Renault understood that on the electric car front it started first. “If I had to give a suggestion to a head of government – said De Meo – I would advise him to invest in infrastructure, in tax exemption to create productive ecosystems specialized in advanced technologies that would otherwise not be competitive in countries like France or Italy”.
Gigafactory, France at the heart of the Renault strategy
The problem is the same for everyone: how to manage the transition between now and 2035? Or rather how to anticipate it? De Meo does not hide the difficulties in the face of extreme scenarios, namely the disappearance of all cars that are not electric. But of one thing he is certain: he wants to save the hybrid, full and plug-in, “the only technology capable of guaranteeing an alternative for those who will not have access to electric cars for much longer. A different scenario would have an immediate impact on demand and we will be forced to stop any investment in engines. At the moment we are focusing on a single engine flanked by an electric that gives more or less power.
In order to restart the market, according to the Italian manager, incentives are still needed. But even in this case he makes a distinction. That is, not just the ones we have seen so far. To really facilitate the recovery of the auto industry, measures such as the eco-bonus for green cars are good, but at the same time help is needed for car manufacturers to carry out new projects, “to create the future”. De Meo says he has studied the French case: “If you put 1 euro of sales incentives, you will recover 1.1. If you put that same euro on production, you recover 4”.
Renault, electric car record
In addition, adds the Renault president, to restart the market it will also be necessary to intervene on used vehicles: “We need to modernize the fleet and let those who have a Euro 2 or Euro 3 car switch to Euro 6 cars, even used ones. By doing this, polluting emissions are lowered and at the same time the residual value of the used vehicle increases with benefits on the new market “.
In short, the weight of the crisis looms and there must be many moves. Electrifying the range will be essential but together it will take more: “Industrial plans must be less linked to volumes, especially those that are too high and never respected. My problem – concluded De Meo – is to reduce the weight of all costs with relatively stable, rather conservative volumes. One of the hypotheses we are working on is that the European market will only return to 2019 levels in 2025. So later than almost everyone’s forecasts. The truth is that in this latest crisis we have lost almost a million machines: we sold 3.9 million in 2019 and now we are at 3 million ”. The restart, therefore, will be difficult and to relaunch the market the “great shock” of electricity will not be able to travel alone.
.