Auto sector could face billions in fines amid EV slowdown, Renault CEO warns

Europe’s autos industry could face fines of 15 billion euros (USD 17.4 billion) for carbon emissions owing to slowing demand for EVs, Renault CEO Luca de Meo has warned, according to a report by Reuters.  

Automakers face more stringent EU CO2 targets heading into next year as the cap on average emissions from new vehicles sales drops from 116 g/km in 2024 to 94 grams/km in 2025.

“If electric vehicles remain at today’s level, the European industry may have to pay 15 billion euros 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,” he said.

Breaching CO2 limits can lead to fines of 95 euros per excess CO2 g/km multiplied by the number of vehicles sold.

“Everyone is talking about 2035, in 10 years, but we should be talking about 2025 because we are already struggling,” de Meo, who is also president of the European Automobile Manufacturers Association, 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.”