- European car manufacturers have warned they could face fines reaching €15 billion soon.
- To deal with new regulations, Stellantis will need to boost EV sales or lower ICE production.
- Stellantis European chief Jean-Philippe Imparato highlighted the Atessa van factory risk.
There’s exciting stuff brewing at Stellantis, especially now that Tim Kuniskis is playing a more important role within the company and leading the revival of the SRT brand. But across the Atlantic, the picture is more complicated. The auto giant may be forced to shut down several European factories due to struggles with regional CO2 emissions targets.
Read: EU Just Gave Carmakers Exactly What They Asked For
As part of Europe’s broader efforts to tackle climate change, automakers must adhere to strict emissions limits or face steep financial penalties. Initially, fines were going to be calculated based solely on 2025 emissions. However, lawmakers introduced a change in May that softened the blow.
Emissions will now be averaged across the 2025–2027 period, giving automakers a longer window to meet targets. Without this adjustment, industry leaders warned that penalties could have exceeded €15 billion, or roughly $17 billion.
Targets Still Out of Reach
Even with the extended timeline, Stellantis finds itself in a sticky situation. According to European chief Jean-Philippe Imparato, current targets are still unreachable for the company, and it is staring down the prospect of up to €2.5 billion (about $2.95 billion) worth of fines within “two-three years.”
The Next Steps
While recently speaking at a conference in the Italian parliament, Imparato said Stellantis will need to either dramatically boost EV sales across the continent, or it will need to cut production of its diesel and gas-powered models, meaning factory closures will be necessary.
“I have two solutions: either I push like hell (on electric) … or I close down ICE (internal combustion engine vehicles). And therefore I close down factories.”
One site already under scrutiny is the Atessa plant in Italy, which could face downsizing or closure if the company shifts away from internal combustion production, according to a report from Reuters .
