Renault unveils the Retro 5, a new electric model with retro styling, at the Geneva Motor Show, aiming to prove the popularity and profitability of small electric cars. Despite European manufacturers lagging behind Chinese and US brands in the electric car market, Renault's CEO Luca de Meo remains determined to compete and emphasizes the need for cooperation with Chinese firms, particularly in battery technology, to close the gap. The new Renault 5, priced at £25,000-30,000, faces the challenge of making a profit due to the higher production costs of electric cars.
European manufacturers and retailers are bracing for a "chaotic" period following the recent attacks in the Red Sea, which have heightened concerns about supply chain disruptions and economic impact. The attacks have raised fears of potential delays and increased costs for goods being transported through the region, adding further strain to an already fragile global supply chain.
New Brexit trade rules requiring EU-produced electric cars to be made from locally sourced parts could cost European manufacturers £3.75bn over the next three years, according to the European Automobile Manufacturers Association (ACEA). The rules, which come into force in January, aim to protect the European industry from cheap imports but have caused difficulties for carmakers on both sides of the Channel as battery production in Europe has not ramped up as quickly as expected. The ACEA is appealing to the European Commission to delay the rules for three years, warning that they could reduce output from EU factories by 480,000 vehicles and increase consumer prices for electric vehicles.
