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Stellantis Dealers Urge Delay to EU Emission Goals as Sales Slow

A DS automobile in a Citroen showroom in Paris. (Nathan Laine/Bloomberg)

(Bloomberg) -- Stellantis NV dealers urged the European Union to delay the introduction of stricter CO2 emissions rules next year, a stance that runs counter to the carmaker’s support for the mandates.

The four associations represent European distributors of Stellantis brands including Alfa Romeo, Citroën, Fiat, Jeep, and Peugeot. They asked European Commission President Ursula von der Leyen to delay the regulations taking effect Jan. 1 because they could hurt the auto industry, according to an Oct. 4 letter obtained by Bloomberg News.

“We are in daily contact with end customers who frequently reject electric vehicles due to concerns over price, range, and accessibility,” the dealers wrote. “This places us in a position contrary to that of the manufacturer we represent, who remains optimistic about meeting these stringent EU regulations.”

The dealers’ position lines up with other European carmakers, including French rival Renault SA, that are seeking a delay to the 2025 rules. Demand for battery electric vehicles in Europe has slowed this year, but selling more EVs will be key to reaching the 2025 fleet targets.

European automakers could incur as much as €15 billion in fines because of the stricter 2025 emissions targets, Renault CEO Luca de Meo said last month. The region’s biggest auto lobby group has called for “urgent action” ahead of the rules.

Stellantis Chief Executive Officer Carlos Tavares is among the handful of industry players that supports the coming changes. He said last month that it would be “surreal” to change the rules now. 

The carmaker and its dealers are “very proud to contribute as a team to fight against global warming,” a Stellantis media representative said in response to the dealers’ letter. “We will work with our dealers to define the perfect mix of sales within the limits of CO2 compliance.”

Tavares, 66, is under pressure from US dealers to take steps that will clear inventory and arrest a decline in market share. In their letter, the European dealers didn’t mention the CEO by name.

©2024 Bloomberg L.P.