Stellantis Opposes Any Delay in EU Rules on Vehicle Emissions

(Bloomberg) -- Stellantis NV, Europe’s second-biggest carmaker, is pushing back against any move by the European Union to delay emissions targets set to take effect next year, setting up a potential clash with other manufacturers in the region.

“It would be surreal to change the rules now,” Chief Executive Officer Carlos Tavares told Agence-France Presse on Sunday. A spokesman for Stellantis confirmed the comments and provided a company statement in support of keeping the current regulation. It calls for continued government subsidies for consumers toward the purchase of electric vehicles.

“Everyone has known about the rules for a long time and has had time to prepare, and so now it’s time to have a race,” Tavares said in the interview, adding that Stellantis has readied EVs and put in place the means to sell them.

The European Automobile Manufacturers’ Association, known as ACEA, has drafted a proposal for the EU to take emergency measures to delay by two years targets that are set to take effect in 2025. The head of the lobby, Renault SA Chief Executive Officer Luca de Meo, has also said he would like to see more EU flexibility on the rules.

Tavares pulled Stellantis out of the group in 2022 and the company on Sunday said it has organized itself to comply by lowering costs, rolling out new models and facing competition from Chinese manufacturers and Tesla.

In a Sept. 12 statement on its website, ACEA said that “the EU automotive industry has invested billions in electrification to put vehicles on the market, but the other necessary ingredients for this transition are not in place and the competitiveness of the EU is eroding.”

The draft proposal, seen by Bloomberg News, estimates the targets would require automakers to either halt production of about 2 million cars or be exposed to fines that could reach €13 billion ($14.4 billion) for passenger cars.

Europe’s auto sector is struggling with cheaper models from China, high energy costs and slow consumer demand, with sales remaining well below pre-pandemic levels.