Not really.
Germany will not let their car makers die.
It depends on how you define average.
I believe the interpretation means across all the cars that you sell.
Ferrari will be OK due to all the small Fiats they sell.
Aston will be in trouble.
But Rolls might be OK, since they are part of BMW. This is why BMW needs small cars.
Lambo is part of Audi, so could get by due to lots of small A3's.
Porsche could buy VW then just sell lots of Lupos.
It is just scaremongering.
The Europrats will not kill off all the car industry in the Europe then force us to buy small Japanese or Chinese boxes.
If nothing else, they need the big cars to ferry them between parliaments.