Renault Group CEO Luca de Meo has warned that Europe’s car manufacturing industry could be fined up to €15 billion (£11.46bn) due to slowing demand for electric vehicles (EVs), which threatens the sector’s ability to meet stricter EU carbon emissions targets.
“If electric vehicles remain at today’s level, the European industry may have to pay €15 billion in fines or give up the production of more than 2.5 million vehicles,” de Meo said during an interview on September 7.
Starting in 2025, the EU will reduce the cap on average CO2 emissions from new vehicle sales, lowering it from 116 grams per kilometre in 2024 to 94 grams per kilometre.
Failure to meet this target could lead to penalties of €95 for each excess gram of CO2 per kilometre, multiplied by the number of vehicles sold.
“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 explained, adding that the industry is currently “struggling” to meet the upcoming deadlines.
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