UN 
(SDGTALKING) – Jean-Philippe Imparato, European President of Stellantis, one of Europe’s leading car manufacturers, said that the company could face billions of euros in fines if it fails to meet its carbon emissions targets, adding that it may be forced to close some of its internal combustion engine production facilities.
Risk of fines up to 2.5 billion euros
Jean-Philippe Imparato, who oversees Stellantis’ European operations, said at a conference in Rome, Italy, that the company could face fines of up to 2.5 billion euros if it fails to comply with the European Union’s stricter carbon emission targets within the next two to three years.
“If there are no changes to the regulatory framework by the end of this year, we will have to make tough decisions,” Imparato said, emphasizing that the company’s current sales mix is far from meeting EU standards.
“We will have to either cut production or close factories”
Imparato outlined two possible options for Stellantis, saying, “Either we aggressively double our electric vehicle sales—which is nearly impossible—or we reduce the production of internal combustion engine vehicles to lower the average emissions of our total fleet.”
Imparato pointed out that this situation could lead to the closure of some production facilities, saying, “I have two solutions: Either a hellish transition to electric… Or I will shut down ICE (internal combustion engine production). This means closing factories.” In this context, he also mentioned that the minibus production facility in Atessa, Italy, could be at risk.
EU pressure is mounting: Targets will become even stricter
The European Union plans to further tighten carbon emission targets for car manufacturers by 2025 in order to limit the effects of climate change. Each manufacturer will be required to ensure that the CO2 emissions of its vehicle fleet do not exceed a certain average. Otherwise, companies will face high fines per vehicle.
Automobile manufacturers are lobbying the EU, arguing that the targets are unrealistic and that more time is needed to achieve full compliance. However, this pressure has only led to temporary delays; the obligations remain valid in the long term.
Struggling with the transition to electric vehicles
Although Stellantis is increasing its production of electric vehicles, it continues to sell a significant proportion of gasoline and diesel vehicles in the European market. Internal combustion engines are still dominant, especially in the light commercial vehicle segment. Issues such as infrastructure, charging stations, and demand for electric vehicles across Europe are slowing down the transition process for manufacturers.
Is the European automotive industry at a crossroads?
Stellantis’ statements indicate that the European automotive industry may face tougher production decisions in the coming years to achieve its carbon neutrality goals. Manufacturers are striving to transform through technology investments while also seeking ways to minimize job losses.
Jean-Philippe Imparato’s strong message serves as a warning not only to Stellantis but also to other manufacturers and EU regulators: “If current conditions do not change, some factories will close, and some production lines will stop.”
