“The rich will have to pay for the transition to electric vehicles”

Renault Group CEO and President of the European Automobile Manufacturers Association (ACEA) Luca de Meo argues that “the switch to electricity must now be paid for by people who have money, the rich, because these cars structurally “cost more money.” He stated this while participating via video conference in the annual forum of Anfac (Spanish Association of Automobile and Truck Manufacturers), held on February 20.

Specifically, this was his response when asked about how a just transition to electrification of heavy and industrial vehicles could be achieved. “One day prices will come down, but 40% of the cost of electric vehicles comes from batteries, and a significant portion of batteries are raw materials that are not found everywhere. So there is a risk of speculation on all this,” he noted.

The manager also stressed that the European Union needs to have a competitive strategy to combat those that China and the United States are implementing to develop their auto industries while investing in electrification.

Dangers for the European auto industry

“What is at stake is our ability to innovate, to invent business models adapted to a new market,” said the Renault group CEO, noting that “for decades the internal combustion engine has acted as a barrier-trap for Europeans.” now it is the Europeans who are relatively vulnerable, especially to the Chinese, when it comes to controlling the lower part of the value chain, extracting and exporting raw materials.”

He also criticized the impact of some European rules on both European car production and the average age of the continent’s fleet, which is now around 12 years (it is higher in Spain). This accumulation of regulations has meant that “the average European car is 60% heavier than 20 years ago, 50% more expensive, and the number of car manufacturing companies in some countries has dropped by 40%.” And as vehicles become more expensive, “people extend the life of their cars, and we keep the most polluting cars on the road longer.”

De Meo also noted that low sales of electrified cars in countries such as Spain and Italy are “very worrying.”

Likewise, De Meo also noted that low sales of electrified cars in countries such as Spain and Italy are “a big concern” and that the stability of the European market is not good news as it is expected to grow at a much higher rate. For this reason, he asked that the EU, the States and the sector work together to increase demand, because “as long as the United States and China are not messing around” in promoting their auto industry, “Europe is dancing the cha-cha”, without a “holistic” approach and without a “genuine industrial policy”.

In this sense, we must be aware of the weight that the automotive industry has in the European Union, where it represents 8% of GDP and employs 13 million people, that is, 7% of workers.

For his part, at the same forum, Anfac President and Seat and Cupra CEO Wayne Griffiths asked the Spanish government to activate measures to promote the adoption of electric vehicles in Spain, both in sales and development. charging infrastructure. So, as an example, he cited Portugal (VAT deduction is allowed there) or direct assistance from Germany to manufacturers.

“The most important thing is to be globally competitive; In addition to understanding whether it is for the rich or the poor, there needs to be confidence from the administration to the consumer that electricity is the technology of the future,” the president said. President from Anfak.

In this sense, he stressed that it “cannot be” that zero-emission electric vehicles are produced using coal power. “Cars should be made here, not in other cheaper countries that use dirty energy and ship it in polluting ships,” he said.

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