Renault CEO Luca de Meo noted that Europe's auto industry could be looking at fines to the tune of 15 billion euros for carbon emissions, on the back of slowing demand for electric vehicles, Reuters reported.
Auto firms will have to contend with stricter EU Co2 targets in 2025, as the cap on average emissions from new vehicles sales drops from 116 grams/kg in 2024 to 94 grams/ kg in 2025, Reuters noted.
"If electric vehicles remain at today's level, the European industry may have to pay 15 billion euros in fines or give up the production of more than 2.5 million vehicles," de Meo said in an interview to France Inter radio.
"The speed of the electric ramp-up is half of what we would need to achieve the objectives that would allow us not to pay fines," de Meo, who also dons the hat of president of the European Automobile Manufacturers Association (ACEA), said of the sector, the newswire noted.
Exceeding CO2 limits can lead to fines amounting to 95 euros per excess CO2 g/km multiplied by the number of vehicles sold, which could translate to penalties of hundreds of millions of euros for large carmakers, the newswire noted.
He asked for 'a little flexibility', and said setting deadlines and fines without being able to make it more flexible, is 'very, very dangerous.'