Europe's car industry could face fines of €15bn (about R311,423,329,500) for carbon emissions due to slowing demand for electric vehicles, Renault CEO Luca de Meo said on Saturday.
Carmakers face tougher EU CO² targets in 2025 as the cap on average emissions from new vehicles sales falls to 94g/km from 116g/km in 2024.
"If electric vehicles remain at today's level, the European industry may have to pay €15bn (about R297,282,900,000) in fines or give up the production of more than 2.5-million vehicles," De Meo told France Inter radio.
"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," De Meo, who is also president of the European Automobile Manufacturers Association), said of the sector.
Exceeding CO² limits can lead to fines amounting to €95 (about R1,882) per excess CO² g/km multiplied by the number of vehicles sold.
That could result in penalties of hundreds of millions of euros for large carmakers.
"Everyone is talking about 2035, in 10 years, but we should be talking about 2025 because we are already struggling," he said.
"We need to be given a little flexibility. Setting deadlines and fines without being able to make that more flexible is very, very dangerous."
Renault CEO says sector could face billions in fines as EV sales slow
Image: Rudy Carezzevoli/Getty Images
Europe's car industry could face fines of €15bn (about R311,423,329,500) for carbon emissions due to slowing demand for electric vehicles, Renault CEO Luca de Meo said on Saturday.
Carmakers face tougher EU CO² targets in 2025 as the cap on average emissions from new vehicles sales falls to 94g/km from 116g/km in 2024.
"If electric vehicles remain at today's level, the European industry may have to pay €15bn (about R297,282,900,000) in fines or give up the production of more than 2.5-million vehicles," De Meo told France Inter radio.
"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," De Meo, who is also president of the European Automobile Manufacturers Association), said of the sector.
Exceeding CO² limits can lead to fines amounting to €95 (about R1,882) per excess CO² g/km multiplied by the number of vehicles sold.
That could result in penalties of hundreds of millions of euros for large carmakers.
"Everyone is talking about 2035, in 10 years, but we should be talking about 2025 because we are already struggling," he said.
"We need to be given a little flexibility. Setting deadlines and fines without being able to make that more flexible is very, very dangerous."
China, price cuts and costs: the fuel driving Volkswagen’s crisis
How carmakers are adjusting their electrification plans as EV demand slows
Toyota cuts 2026 global EV output plans by a third: Nikkei
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos