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Renault CEO Warns of Billions in Fines for Auto Industry Amid Slow EV Sales

Sep 7, 2024 1 min read

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Renault CEO Luca de Meo has cautioned that Europe's automotive industry could face fines amounting to €15 billion ($17.4 billion) due to the declining demand for electric vehicles. This warning comes as the European Union prepares to tighten its CO2 emission standards for new vehicles in 2025, reducing the cap from 116 grams/km to 94 grams/km. Should electric vehicle adoption rates remain stagnant, the industry might incur substantial penalties or need to cut the production of over 2.5 million vehicles.

Under the new regulations, automakers exceeding the CO2 limits will face fines of €95 for each gram of CO2 over the limit, multiplied by the number of vehicles sold. This could result in penalties running into hundreds of millions of euros for larger car manufacturers. De Meo also highlighted the importance of the electric vehicle market for the sustainability of European industrial battery manufacturing projects and called for more realistic deadlines and flexibility to meet these stringent emission targets.

#auto #business-leaders #green-energy #electric-vehicles #science #environment #esg #climate-change

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