Cost, Regulations, Dependence

Europe Sacrifices Its Automotive Industry

The recent comments from Luca de Meo, CEO of Renault, sound like a real wake-up call for the European automotive industry. According to him, the future of electric vehicles (EVs) in Europe looks bleak, marked by rising costs, increasingly strict regulations, and growing competition from China that is becoming harder to counter. At WOT, we share this perspective and see this situation as a direct consequence of a Europe too focused on regulating rather than innovating.

The Illusion of Affordable Electric Cars 

Luca de Meo believes that the cost of EVs could rise by 40% by 2030, a worrying prediction for a market already under pressure. European manufacturers, forced to sell an ever-higher percentage of EVs to meet CAFE standards, find themselves trapped between crushing regulatory demands and rising production costs. These costs, mainly linked to batteries, are exacerbated by China’s near-total control of raw materials. As a result, the dream of an affordable electric car is rapidly fading, giving way to vehicles that are out of reach for the average consumer.

At WOT, we believe Europe made a strategic mistake by imposing such abrupt transitions. Rather than supporting its manufacturers with reasonable timelines and a coherent strategy to secure raw material supplies, Europe favored Chinese industries, which now dominate the market with unbeatable production costs.

Suffocating Regulation 

Europe seems to have made regulation its mantra. Between CAFE standards, the constraints imposed by GSR2 (forcing the integration of sometimes absurd systems like speed limit sound alerts), and the new Euro standards, European manufacturers are literally being suffocated. Worse still, these regulations increase costs, which are inevitably passed on to the end customer. The result: growing disinterest in EVs and an industry on the brink of collapse.

For us, as specialists in certified vehicle reprogramming, these constraints have a direct impact. Vehicles are becoming more complex, not to improve their performance or reliability, but to meet bureaucratic requirements that are often disconnected from real-world conditions. This stifles innovation and reinforces our belief that Europe, by acting like a "preacher," is depriving itself of a future where it could (and once did) lead.

The Chinese Threat 

While Europe bogs itself down in regulations, China is making rapid strides. Companies like BYD now dominate the European market thanks to an effective strategy and massive state support. They control not only the battery supply chain but also implement aggressive pricing policies that harm their foreign competitors. This growing dependence on China raises questions, particularly concerning sovereignty and sustainability. After all, importing vehicles and batteries from the other side of the world is far from a sustainable solution.

WOT’s View: Change Course Before It's Too Late 

At WOT, we believe Europe must radically change its strategy. Instead of imposing unrealistic goals and overregulating, it’s time to support local innovation, secure raw materials, and give manufacturers the means to succeed in this transition. Electric vehicles can be part of the solution, but not under current conditions.

Furthermore, it's urgent to consider the long-term consequences of these choices. With the explosion of artificial intelligence and the resulting energy demands, we are heading towards a real supply crisis. Without a global strategy and a strategic shift, the European automotive industry risks seeing its champions exit the market, leaving the field to better-prepared foreign players.

Conclusion: Innovate to Avoid Disappearance 

Luca de Meo is right to sound the alarm. Europe is at a crucial turning point, and it's imperative to put innovation back at the center of its priorities. At WOT, we believe the automotive industry still has a bright future, but only if its players are not stifled by unrealistic regulations and if we don't sacrifice our sovereignty on the altar of a poorly thought-out ecological transition. The time has come for Europe to stop being just a regulator and start being a driver of innovation again.