This is a real headache for car manufacturers on the Old Continent. The European CO2 regulation, otherwise known as the “CAFE standard”, for Corporate Average Fuel Economy, comes into force from 2025. And for those who do not reach the carbon dioxide limits not to be exceeded at the end of the year, namely 95 g/km, the bill will be very steep: a fine of €95 per gram more… and per car sold!
During the summer, Renault boss Luca de Meo sounded the alarm, predicting fines of up to 15 billion euros for certain manufacturers. But while Renault or BMW are asking for modifications or postponements of these rules, at Stellantis, the method is quite different, as confirmed by Jean-Philippe Imparato, former CEO of Alfa Romeo and Peugeot, and newly promoted European boss of Stellantis. No postponement or reduction requested, the adjustment variable will be made directly at the level of the group’s production. Even if it means putting thermals aside!
It’s happening now
For the outgoing CEO (in 2026) Carlos Tavares, seeking at all costs to withdraw or weaken the CAFE standards means continuing to fall behind Chinese automobile manufacturers, who are already very advanced in electric vehicles. As for Jean-Philippe Imparato, he declared during an interview given at the 2024 Paris Motor Show – which closed its doors this Sunday, October 20 – that to reach 24% of electric vehicles sold in 2025, it would be necessary to double the share of VE next year.
How to get there? By reducing the production of thermal cars. Quite simply. And it’s happening now! Quoted by our colleagues at Automotive News, he declared: “My first task is to align production of vehicles sold in the first quarter of 2025 by the first week of November. It takes about 60 days for a car to go from the production line to registration, whether it ends up at a home, business or dealership.”
Increase thermal prices!
To ensure that Stellantis achieves the objectives set, Jean-Philippe Imparato therefore intends to cut to the chase and reduce the share of thermal vehicles. “Since we only produce vehicles ordered by customers, we will assemble as many vehicles with internal combustion engines as necessary to maintain the share of electric vehicles at the required level.” Furthermore, the CEO also mentioned the possibility of increasing the price of thermal vehicles on a case-by-case basis, by model, by brand, by market, in the situation where demand would be stronger than expected to achieve the objectives in terms of CO2 emissions.
The aim is also to stimulate the sale of electric cars, in particular by offering sales forces incentives. We must also not forget that Stellantis will be able to count on Leapmotor, in which the group has invested (51% stake in the Leapmotor International joint venture), to reduce its CO2 emissions. The Chinese brand has already marketed two electric models on the Old Continent, the T03 city car and the C10 SUV. One thing is certain, it is that due to these obligations imposed on car manufacturers, and the prices on thermal energy which could therefore increase, the purchase of an electric car could be more interesting than ever in 2025!
