CO2 quotas: Stellantis opposes the relaxation of European standards wanted by Renault

This was the main concern of car manufacturers to prepare for the year 2020, the European CAFE (Corporate Average Fuel Economy) standards will once again be talked about. As a reminder, the EU has set manufacturers targets for average CO2 emissions for their cars sold on its territory. If these thresholds are exceeded, which are different for each manufacturer because they are weighted according to the average mass of their cars sold in the EU, the brands are exposed to heavy fines. Thus, in 2020, this standard cost a total of more than 500 million euros to manufacturers who exceeded their targets.

From 2020 to 2024, the average emission imposed on the automotive industry was 115.1 g of CO2/km (WLTP cycle). If manufacturers have since complied, to the point where no fines had to be paid in 2022they fear the next deadline for tightening this standard, set for 2025. Thus, next year, the average objective set for the industry will fall to 93.6 g of CO2/km, then to 49.5 g of CO2/km in 2030 and to 0 g of CO2/km in 2035, the date on which regulators plan to ban the sale of new thermal cars in the EU (excluding e-fuels).

Stellantis goes against the grain of European manufacturers' lobbies

Several manufacturers are therefore calling for a softening of the CO2 thresholds to be respected in 2025, in particular because of the slower growth in sales of electric cars than imagined in 2019, when the emission thresholds were set. This energy, which plays a very important role in compliance with CAFE standards, since electric cars officially emit 0 g of CO2/km, saw its market share decline in Europe in the first half of 2024.

ACEA, the European Automobile Manufacturers Association, has indicated that the European automobile industry “has invested billions in electrification to bring vehicles to market, but the other ingredients needed for this transition are not in place and the EU's competitiveness is eroding.”

Luca de Meo, the head of the Renault group, who also chairs the ACEA, warned that France Inter that “If electric vehicles remain at today's level, the European industry may have to pay a fine of 15 billion euros or give up production of more than 2.5 million units.”

Surprisingly, Carlos Tavares, CEO of Stellantis, known for his critical view of the EU's forced march towards electric, is this time siding with the European institutions. He told AFP that:“It would be surreal to change the rules now”. He wanted to point out that “Everyone has known the rules for a long time and has had time to prepare. So it's time to race.” As a reminder, Stellantis abruptly left ACEA in 2022.

These statements suggest that Stellantis expects to meet the emissions targets that the EU imposes on the group. According to analyses by DataforceStellantis would have reached an average of 113 g of CO2/km on its cars sold in the EU during the first half of 2024, just at the level of its current target. We can therefore imagine that the group is counting on its latest electric innovations to reduce its average emissions as quickly as possible, such as the Citroën ë-C3 with very great potential, but which is for the moment being awaited.

As in 2020, it is likely that manufacturers will register a large number of electric cars to lower their emission averages, even if demand is not at the level. Manufacturers also have the possibility of coming together within pools. This allows a brand that exceeds its emission quotas to partner with a manufacturer that is below its own, in order to avoid EU fines. Inevitably, these alliances are monetized; a godsend for an electric car brand like Tesla.