Even if the electric car market may show some signs of weakness, the boss of Renault affirms that we must not bury this new technology too quickly.
At the slightest sign of a slowdown in sales of electric cars or a change in strategy by a historic manufacturer, the same refrain comes up again and again: electric is just a hobby that will quickly disappear. Enough to give fodder to the anti-electric car clan. Except that everything does not come down to putting the brakes on the new models to come, the investments made in Europe are colossal – more than 250 billion put on the table by the various manufacturers, which must now be made profitable. Reversing is no longer really possible.
Carlos Tavares, the boss of the Stellantis group (Peugeot, Citroën, Fiat and the 11 other brands), continues to blow hot and cold on the electric car. But not all bosses in the automotive sector share this ambivalent discourse. This is the case of Luca de Meo, head of the Renault group, who explains why the electric car will prevail in Europe during the group’s financial results conference, which was held on February 15.
A regulatory obligation more than a choice
“ Electricity will continue to develop » he responded to a question from a financial analyst. He then clarified that the auto industry actually had no real choice. The CAFE (Corporate Average Fuel Economy) regulation requires manufacturers not to exceed a CO2 emission threshold. From 2025, the threshold to be reached is lowered to 81g of CO2: manufacturers will absolutely have to sell a lot of electric cars to compensate for the impact of thermal and hybrid cars. No one will be able to ignore the electric car, without risking stratospheric fines.
Luca de Meo considers that conclusions on the development of the electric market are drawn far too hastily: “ Electricity will become the dominant technology, we must not rely on a slowdown over 3 months “. In an interview with Le Figaro published on February 14, the business leader even went a little further in warning: “ The world is a little too impatient with electric. Analysts and media tend to lose the long-term vision. We must keep a cool head: this market will have ups and downs, but we will never go back on the switch to electric. »
The withdrawal of Ampère’s IPO should not give reason to these theories
When Renault announced that its Ampère subsidiary – dedicated to electric cars and software – would not attempt an IPO, certain shortcuts were made to prove that electric therefore had no future. The reality is very different: Renault’s exceptional financial results and market instability have pushed the company to review its strategy, ultimately playing it safe. There is no alarmist speech hidden behind this decision, quite the contrary.
Renault indeed confirms that electric will develop in the group with an offer that meets customer needs. The new AmpR Small platform is ready. The year 2024 will allow the brand to provide answers to the expectations of Europeans, particularly on the most affordable vehicles:
- Renault 5
- Renault 4
- Revival of Dacia Spring
These 3 models will meet the demand for electric vehicles priced under €30,000. Renault also sought to improve manufacturing costs for models in the higher segment: Mégane and Scénic saw their price positioning adapt to the market without sacrificing the manufacturer’s margins.
In three years, the Renault group has not only caught up with any potential delay in electric vehicles, it has taken a generation lead compared to other manufacturers with its new platform and Ampère’s strategy. The boss of the group is not kind to those who continue to procrastinate: “ Only those capable of anticipating the next tectonic shifts in the automotive landscape will have a future. »
Luca de Meo warns that “ what happens next won’t be a walk in the park “. All the teams are on the floor and do not intend to stop there: “ don’t count on us to go into cruise mode » he concluded his presentation.
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