May 15 (Reuters) - Stellantis ( STLA ) chairman John

Elkann said on Thursday in a joint appearance with Renault

CEO Luca de Meo that the European Union needs to cut

regulations that are making cars, especially smaller models, too

expensive.

"If we have less regulations, we can make sure that we build

cars that are less expensive and so they'll be more affordable,"

said Elkann, appearing at the FT Future of the Car Summit in

London via video link.

Their joint appearance comes just over a week after the

European Parliament voted to fast track softer EU CO2 emissions

targets for cars and vans that will allow automakers more time

to comply and reduce potential fines.

Renault's de Meo said that the French automaker already

"doesn't make money" on some small cars, adding that between

2015 and 2030 regulations will raise the cost of a medium-sized

Renault-built car by 20% and for small cars by 40%.

"Small cars still have a purpose and they could actually

reboost the automotive market in Europe," de Meo said.