PARIS (Reuters) – Europe’s autos business might face fines of 15 billion euros ($17.4 billion) for carbon emissions resulting from slowing demand for electrical automobiles, Renault (EPA:) CEO Luca de Meo mentioned on Saturday.
Automakers face harder EU CO2 targets in 2025 because the cap on common emissions from new automobiles gross sales falls to 94 grams/km from 116 g/km in 2024.
“If electrical automobiles stay at right this moment’s degree, the European business might should pay 15 billion euros in fines or surrender the manufacturing of greater than 2.5 million automobiles,” de Meo informed France Inter radio.
“The pace of the electrical ramp-up is half of what we would wish to attain the aims that might enable us to not pay fines,” de Meo, who can also be president of the European Car Producers Affiliation (ACEA), mentioned of the sector.
Exceeding CO2 limits can result in fines amounting to 95 euros per extra CO2 g/km multiplied by the variety of automobiles offered.
That might end in penalties of lots of of tens of millions of euros for big carmakers.
“Everyone seems to be speaking about 2035, in 10 years, however we ought to be speaking about 2025 as a result of we’re already struggling,” he mentioned.
“We must be given a bit flexibility. Setting deadlines and fines with out having the ability to make that extra versatile could be very, very harmful.”