Renault calls for a European industrial strategy

François Provost, chief executive of Renault Group, met Italian journalists at the Paris motor show and argued that Europe must accelerate its decisions on the car industry. He called for a real industrial strategy, simpler regulation and conditions that let European carmakers compete internationally. Provost said the past two years had brought insufficient progress on CO2 emissions rules, regulatory simplification and a common industrial policy. He warned of a danger to the survival of the European car industry, which has lost a third of its jobs on the continent since 2010. Provost also addressed Chinese competition, electrification, car costs and Renault's investment plans. He has recommended for two years an agreement between the European Union and Beijing, under which Europe would not limit imports but would invite Chinese manufacturers willing to invest in Europe to do so.

Stellantis acknowledges overcapacity but rules out closures

Stellantis chief executive Antonio Filosa, speaking at the Paris Automotive Summit, acknowledged excess production capacity, mainly in Europe, while ruling out plant closures.

“We have excess production capacity, especially in Europe, but we do not want to close plants.”

Filosa said the solution is to share capacity with Chinese partners Leapmotor and Dongfeng, both governed by joint ventures. According to him, the partners will produce in plants that both sides have selected, with production localised in Europe. Stellantis does not want products in its factories that compete with its other brands, and the partnerships also involve sharing know-how in both directions. The shared goal, he said, is to sell more cars, especially electric ones, and distribution is central to that plan. Filosa also said Stellantis will need further battery gigafactories in Europe and that Europe must allow the company to make those investments.

Italy: Mirafiori, Cassino and the Maserati plan

On the opening day of the show, Arnaud Belloni, who heads the Fiat and Lancia brands, floated work on a small car inspired by the philosophy of the Citroën 2CV. Turin unions and Piedmont governor Alberto Cirio welcomed the idea. Filosa was more cautious, saying Stellantis likes Mirafiori and the 500 and is doing all it can, but needs institutions to help it do more. He said Mirafiori has doubled its production this year, Italian volumes are up 30%, and the aim is to double 2025 levels by the end of the year, though the problems are not yet solved. Filosa told Milano Finanza that Italian production is expected to grow by a little under 30% in the first nine months of the year. He pointed to energy costs, which in Italy are more than double those in Spain, and to logistics as areas needing action, adding that labour costs can be addressed only marginally. Emanuele Cappellano, Stellantis's head for Europe, noted that Mirafiori is more than an assembly plant, with activities ranging from circular economy to battery testing and electrified transmissions.

The Modena and Cassino plants are running below their potential because they lack new models. Filosa said the future of Cassino will depend largely on the Maserati plan, which will be presented in Modena in December.

“We can no longer afford to make mistakes, we have no other opportunities.”

Filosa said the Italy Plan presented in December 2024 is being implemented, pointing to an additional one billion euros of investment in Atessa and a new Alfa Romeo coming to Melfi.

Financial targets and Chinese partnerships

According to Milano Finanza, Filosa's priorities are to respect the 2026 guidance, reach positive free cash flow in 2027 and generate three billion euros of cash in 2028. He also previewed a return of the Citroën 2CV, to be built on the E-car platform, which he described as electric, economical and European. The car is to be made entirely in Europe, priced around 15,000 euros and due in production in a couple of years. At the summit, Filosa said Stellantis has chosen to develop partnerships with Chinese operators and with partners in other markets, including India. In the Leapmotor case, he said, the partnership combines technological skills, industrial capacity and market access to offer more competitive electric vehicles at accessible prices. Other speakers at the summit included Volkswagen chief executive Oliver Blume, Renault's Provost, Valeo director general Christophe Perillat, French industry minister Sébastien Martin and European Commission vice president Stephane Sejourné.