Stellantis against relaxation of EU emission targets: Joining forces against the competition

The European automobile manufacturer Stellantis, the continent's second-largest of its kind, is staunchly opposing a European Union initiative to postpone next year's scheduled emission targets. This stance could lead to a conflict with other manufacturers in the region. "It would be surreal to change the rules now," Stellantis CEO Carlos Tavares stated to Agence-France Presse. A company spokesperson confirmed this statement and added a corporate message supporting the retention of the current regulations. This includes the continuation of government subsidies for the purchase of electric vehicles. Tavares further emphasized that the rules have been known for a long time and there has been sufficient time for preparation. Now it is time "to run." Stellantis has accordingly prepared by bringing electric vehicles to market and creating the necessary distribution structures. The European Automobile Manufacturers' Association (ACEA) has drafted a proposal suggesting that the EU should postpone the emission targets by two years to 2027. The CEO of Renault, Luca de Meo, who also chairs the ACEA, has also advocated for greater flexibility from the EU. Stellantis withdrew from the ACEA in 2022 and stated on Sunday that it has prepared to meet the targets through cost reductions, the introduction of new models, and competition from Chinese manufacturers and Tesla. In a statement on its website dated September 12, the ACEA declared that the European automotive industry has invested billions in electrification, but many necessary conditions for this transition have not yet been met and the EU's competitiveness is losing ground. The ACEA's draft, reviewed by Bloomberg News, estimates that the emission targets could force automakers to cease production of around 2 million vehicles or risk penalties of up to 13 billion euros for passenger cars. Europe's automotive industry is currently grappling with competition from cheaper models from China, high energy costs, and sluggish consumer demand. Sales figures lag far behind pre-pandemic levels.