Renault CEO urges European 'Marshall Plan' for electric vehicle adoption amid Chinese competition
Luca de Meo, the chief executive of French automaker Renault, has called for a European initiative akin to the post-World War II Marshall Plan to accelerate the transition to electric vehicles (EVs) and mitigate carbon emissions. His proposals aim to kickstart a policy debate ahead of the European parliamentary elections scheduled for June.
In his advocacy, de Meo highlighted the potential of a European Marshall Plan to expedite the renewal of vehicle fleets, thereby significantly reducing CO2 emissions. He likened this initiative to the EU's post-Covid recovery plan, suggesting that a dedicated European fund could provide incentives for the purchase of both new and used EVs.
Europe has set ambitious targets to phase out the sale of traditional internal combustion engine vehicles by 2035 as part of its broader efforts to achieve carbon neutrality by 2050. However, amidst fierce competition from Chinese EV manufacturers, de Meo emphasized the urgent need for the EU to develop an industrial strategy similar to those that propelled Airbus and the Chinese EV industry.
De Meo proposed the establishment of "green economic zones," inspired by China's special economic zones, where companies would receive additional subsidies and tax breaks to accelerate EV development. He also underscored the importance of collaborative efforts to manufacture small and affordable EVs, which not only contribute to improved air quality in cities but are also more cost-effective and environmentally sustainable.
Acknowledging the rising prices of small city cars over the past two decades, de Meo stressed the necessity of initiatives to lower costs and provide incentives and financing options to facilitate consumer adoption of EVs. Additionally, he suggested that Europe's largest cities implement measures such as offering free access for small zero-emission vehicles while imposing fees on other vehicle owners to further incentivize the transition towards EVs.
