Automakers fear billions in fines due to disappointing European EV sales

CO2 rules

European carmakers face a serious challenge: sales of electric cars are lagging, and that could cost the industry billions in fines.
In fact, starting in 2025, CO2 regulations will become stricter, lowering the allowable emissions per car from 116 grams to 94 grams of CO2 per kilometer.
That may seem like a small step, but for manufacturers, meeting it will be quite a task.
If the new standards are not met, the fines can be steep: 95 euros for every gram of CO2 above the standard, per vehicle sold.
That could cost manufacturers dearly, especially if sales of electric cars do not pick up soon.

15 billion euros

Luca de Meo, CEO of Renault and president of the European Automobile Manufacturers Association ACEA, recently sounded the alarm in an interview on French radio station France Inter.
He warned that fines could total as much as 15 billion euros if current sales of electric models do not improve.
“If we do not meet the targets, we could be forced to stop the production of more than 2.5 million vehicles,” De Meo said.

Millions of jobs

Concerns about disappointing electric vehicle sales are not just a financial issue for automakers, but could also have a major impact on the entire supply chain and labor market in Europe.
After all, the auto industry is one of the continent’s largest employers, employing millions of people, from assembly lines to technology development.
For example, Schaeffler, a major German supplier to the automotive industry, recently decided to significantly adjust its strategy because of the declining EV market:

Read more: Major German automotive supplier cuts production of EV parts