Renault CEO Warns the Sector Could Face Large Fines Due to Slowing EV Sales: Report

Renault CEO Luca de Meo has warned that Europe’s automotive sector could face substantial fines due to slowing electric vehicle (EV) sales, potentially reaching 15 billion euros for carbon emissions, according to a Reuters report.

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Renault CEO Warns the Sector Could Face Large Fines Due to Slowing EV Sales: Report

September 9, 2024

Auto manufacturers will need to meet tougher EU CO2 targets starting in 2025. The cap on average emissions for new vehicle sales will decrease from 116 grams/kg in 2024 to 94 grams/kg in 2025, Reuters reported.

“If electric vehicle sales continue at their current rate, the European industry might face fines of up to 15 billion euros or be forced to cut production by more than 2.5 million vehicles,” de Meo stated in an interview with France Inter radio.

De Meo, who also serves as president of the European Automobile Manufacturers Association (ACEA), highlighted that the current pace of electric vehicle adoption is only half of what is needed to avoid fines.

Exceeding the CO2 limits could result in fines of 95 euros per gram of excess CO2 per kilometer, multiplied by the number of vehicles sold, potentially leading to hundreds of millions of euros in penalties for large automakers.

He emphasized the need for “a bit of flexibility” and warned that imposing strict deadlines and fines without room for adjustments could be “very, very dangerous.”