TURIN – Stellantis (NYSE: STLA) will be compliant with European Union targets for 2025 intermediate carbon reduction, aiming to increase electric vehicle (EV) sales or potentially to cut production of petrol vehicles, the company’s European head said on Thursday.
Jean-Philippe Imparato, who took up Europe’s chief position in October, said the company has no intention of paying EU fines in 2025, adding this was not even a “talking point” for Stellantis.
“We’ve got 14 new fully electric models being launched between the second half of this year and the first half of 2025,” he said.
Based on EU rules, Stellantis’s EV sales in Europe would have to increase from 12% of the current total to 21%, he said, with potential fines of 300 million euros ($315 million) for any missed percentage point.
“When you’re in such a situation, either you increase EV sales volumes or you cut sales volumes of internal combustion engine (ICE) vehicles,” Imparato said.
Cutting ICE volumes could have undesirable consequences, he said, referring to potentially reduced production and job redundancies, he said.
Imparato said however that a recent decision by Stellantis (NYSE: STLA) to rejoin the European auto lobby ACEA, after it left the group at the beginning of 2023, means the carmaker would align itself with ACEA’s official proposals.
Under Chief Executive Carlos Tavares, who resigned this month, the company opposed ACEA’s call for relief on EU 2025 intermediate carbon reduction targets, the so-called CAFE standards. If not met the CAFE standards could cost the auto industry billions of euros in fines.
Imparato was speaking to reporters after meeting unions in Turin ahead of talks next week at an official Industry Ministry meeting in Rome to discuss Stellantis’s long-term manufacturing plans for Italy.
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