Europe’s automotive industry could face fines of up to €15 billion ($17.4 billion) due to a decline in demand for electric vehicles, according to Renault CEO Luca de Meo. Automakers are set to confront stricter EU CO2 emissions targets in 2025, with the average emissions cap for new vehicles dropping to 94 grams/km from 116 grams/km in 2024.
“If the current adoption rate of electric vehicles persists, the European auto industry could either face €15 billion in fines or cut production by over 2.5 million vehicles,” de Meo stated during an interview with a radio channel. He further noted, ” The speed of the electric ramp-up is half of what we would need to achieve the objectives that would allow us not to pay fines.”
Exceeding CO2 emission limits could result in fines of €95 per excess gram of CO2 per kilometer, multiplied by the number of vehicles sold, potentially leading to penalties in the hundreds of millions for major automakers.
De Meo, who is also president of the European Automobile Manufacturers Association (ACEA) said, “Everyone is talking about 2035, in 10 years, but we should be talking about 2025 because we are already struggling. We need to be given a little flexibility. Setting deadlines and fines without being able to make that more flexible is very, very dangerous.”