Renault boss Luca De Meo in an interview

Mr. De Meo, Europe's auto industry is facing major challenges: energy prices remain high, demand for electric cars is declining and competition from Tesla and Chinese manufacturers is increasing. Given this background, are the regulations and the phase-out of combustion engines still up to date?

Indeed, we are experiencing a challenging time and the industry is at a turning point, especially in Europe. Too many regulations are coming at the same time; on average there are eight to ten new ones every year. They are not always coordinated.

What do you think about?

On the one hand, we are being asked to invest heavily in electric vehicles, but on the other hand, the Euro7 emissions standard in its original version would have forced us to invest billions in a technology that is being phased out. Or take the planned ban on PFAS chemicals: 14,000 materials are to be banned, and ironically many of them will be used for green technology like electric or hydrogen cars. The EU just invents regulations but has no strategy. We need a strategic industrial policy.

What should be part of a strategy?

An agreement between the various interest groups, especially with a view to our pioneering role in climate change. It is a big misunderstanding that the auto industry is against the Green Deal and wants to hold on to the past. While many people just talk and write regulations, we are investing 250 billion euros. So we are serious, and there is no industry that demands as much as the auto industry. But to prepare the ground for a pioneering role, a sensible framework with clear definition of goals and resources and with corrective mechanisms is needed.

There are fleet limits in the EU, but also a raw materials law and an industrial law. That's not nothing.

A strategy is different than a regulation that sets a deadline with fines for violations. In companies, you create a ten-year and medium-term plan and also set a new budget every year because experience shows that 50 percent of projects don't work. You have to continually readjust on the way to your goal. The Chinese have such an approach. We must do the same.

Brussels has initiated anti-subsidy proceedings against Chinese car manufacturers and is threatening punitive tariffs. This seems protectionist and would be particularly detrimental to German industry with its strong business in China. Do you support the move?

There are some rules of the game at global level that ensure fair competition. The EU has every right to check whether these rules are being adhered to. This is nothing unusual and occurs in all industries. I am against protectionism because it breeds inefficiency, inflation and a lack of productivity when they don't have to compete with others. We should not rely on this kind of protection in the long term. But we also have to recognize that the Americans are protecting their industry with the Inflation Reduction Act and the Chinese are very effective in strategic economic management. Against this background, Europe has to decide what it wants to do.

What is your answer to this question?