Stellantis Contemplates Shutting Down European Factories to Evade BEV Penalties
In a conference at the Italian Parliament in Rome, Jean-Philippe Imparato, the European head of automaker Stellantis, addressed the growing challenge faced by the industry in meeting the stricter CO2 emission reduction targets set by the European Union.
By 2025, EU automakers must reduce average fleet CO2 emissions by approximately 15%, targeting about 75 grams of CO2 per kilometer. This is a more ambitious target than the 95g/km limit set for 2020-21. Failure to comply will lead to fines, motivating companies like Stellantis to meet or exceed these thresholds.
Imparato warned that weakening the 2025 targets or delaying enforcement could reduce the incentive to accelerate electric vehicle deployment. He proposed two potential solutions: intensifying efforts on electric vehicles or closing down internal combustion engine (ICE) production and factories.
The EU could impose fines of up to €2.5 billion ($2.95 billion) on the Stellantis Group within "two-three years" if the company fails to meet the emissions targets. In light of this, tough decisions may have to be made by Stellantis, including the potential closure of European vehicle plants.
Imparato's comments come amidst a challenging economic climate. He suggested that Stellantis may have to cease production of non-Battery Electric Vehicles (BEVs) to achieve the EU's requirement of 25% BEV sales by 2025. However, European consumers' interest in BEVs has slowed down, with BEV sales in Europe accounting for less than 15.2% of the first-quarter market share, according to ACEA data.
Stellantis remains unreachable in meeting the EU's emissions targets, according to Imparato. He emphasized the need for robust targets to avoid regulatory penalties and ensure market competitiveness in the transition to zero-emission vehicles.
[1] European Commission (2021). CO2 standards for cars and vans. Available at: https://ec.europa.eu/clima/policies/transport/vehicles/car_regulation_en
[2] Transport & Environment (2021). EU car CO2 standards. Available at: https://www.transportenvironment.org/campaigns/eu-car-co2-standards
[3] ADAC (2021). CO2 emissions from cars. Available at: https://www.adac.de/verkehr/auto/umwelt/co2-emissionen-von-kraftfahrzeugen-130642/
- Amidst the pressing issue of climate-change and the evolving landscape of the automobile industry, Jean-Philippe Imparato, the European head of Stellantis, stresses the importance of electric vehicles (EVs) in meeting the stricter CO2 emission reduction targets set by the EU.
- To avoid financial penalties and maintain a competitive edge in the transition to zero-emission vehicles, Imparato suggests that Stellantis may need to intensify efforts on EVs, potentially ceasing production of non-BEVs, and reevaluate plant operations, given the EU's requirement of 25% BEV sales by 2025.
- Given the present slowdown in European consumers' interest in EVs and the persistent challenge in meeting the EU's emissions targets, Imparato emphasizes the role of science, especially environmental-science, and finance in funding and promoting the viability and adoption of EVs to ensure a sustainable future for both the industry and the environment.
