Sat Sep 07 11:16:55 UTC 2024: ## European Automakers Face $17.4 Billion in Fines for Failing to Meet Electric Vehicle Targets
**PARIS** – Europe’s auto industry is facing a potential €15 billion ($17.4 billion) fine for failing to meet its carbon emission targets, according to Renault CEO Luca de Meo. The looming threat stems from sluggish demand for electric vehicles (EVs), which is hindering the industry’s ability to comply with stricter European Union (EU) regulations.
The EU is enforcing a new CO2 emissions cap for new vehicles, decreasing from 116 g/km in 2024 to 94 g/km in 2025. De Meo, who also serves as president of the European Automobile Manufacturers Association (ACEA), warned that if EV adoption continues at its current pace, the industry will face hefty penalties or be forced to significantly reduce production.
“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,” he stated in an interview with France Inter radio.
Exceeding the CO2 limits could result in fines of €95 per excess gram of CO2 per kilometer, multiplied by the number of vehicles sold. This translates to potentially hundreds of millions of euros in penalties for major car manufacturers.
De Meo emphasized the urgency of the situation, calling for greater flexibility in the implementation of the regulations. “Everyone is talking about 2035, in 10 years, but we should be talking about 2025 because we are already struggling,” he said. “We need to be given a little flexibility. Setting deadlines and fines without being able to make that more flexible is very, very dangerous.”
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