Earlier this year, the European Parliament voted to give car companies more time to comply with the new emissions rules that entered into force in 2025. Instead of meeting the goal of the 93.6 g/kg of the newly imposed, the auto companies will have to achieve this number now as Average over three years: 2025-2027. Despite this extension for two years, stellantis is still unhappy.
The president of the European company, Jean-Vhilippe Imparato, claims that car blocs risk paying up to 2.5 billion euros (approximately 3 billion dollars) in fines to exceed the borders of emissions. Unless the legislation changes soon, Stelantis can be forced to pay the punishment during the second years.
Photo: Alpha Romeo
Assuming that the legislation is still unchanged, Car News Europe Emparato quotes that he will have a choice but “make difficult decisions” to avoid emissions sanctions: “Either I click like Hell (on electricity) … or close ice (internal combustion engine vehicles). Thus I close the factories.”
The regulations will become more strict since 2030, when the target of fleet emissions decreases further, from 93.6 g/km to 49.5 g/km. After only five years, the car manufacturers operating in Europe will be asked to reach 0 g/km, prohibiting the effectiveness of selling new combustion engine cars. Vehicles that work on artificial fuels will be allowed, but we are still skeptical that electronic tools will be viable within a decade.
Imparato is not the first executive official to indicate that harsh regulations can severely affect automobile companies. Luca De Meo, CEO of EX-RNAULT last year warned that the European auto industry may face fines of up to 15 billion euros ($ 17.6 billion). Before granting the extension, Rolf Walller, head of the Treasury Department and Investors in the Treasury Group and the investor, estimated that the group will face a fine of 1.5 billion euros ($ 1.7 billion) for its failure to achieve the goals of 2025.
Car companies are stuck between a rock and a difficult place. If you have to artificially reduce the production of combustion engine cars, you will lose sales. But offering larger incentives on EVS to enhance emissions sales and reduce CO₂ fleet will be cut into already fragile margins. Car manufacturers are currently struggling to make a profit on electric cars, so it may mean deepest discounts at a confusion.
All this is due to the numbers game. Add to the increasing equation of cheap Chinese EVS in Europe, and old car manufacturers face dangerous winds on the continent.
