Stellantis' European Dealers Say Carbon Emissions Delay Needed as BEV Sales Slump

Stellantis’s European dealers are joining calls to delay European Union carbon reduction targets as battery-electric-vehicle sales stumble, in direct conflict with the automaker’s stance.

The move by four dealer associations to back Europe’s automaker lobby group, the Automobile Manufacturers’ Association (ACEA), in its bid to make regulators think again is made in an open letter to EU Commissioner Ursula von der Leyen, Reuters reports.

It reads: “We firmly believe that the CO2 reduction targets set for 2025 are unfeasible under current market conditions.”

This will be seen as an attack on the stated position of Stellantis CEO Carlos Tavares, who is already under pressure after months of declining market shares and inventory build-up in both European and U.S. markets.

He has confirmed the automaker group will abide by a pledge to meet the EU targets and says last-minute changes to the regulation are unfair.

The four groups, sellers of auto brands including Peugeot, Jeep, Fiat, Alfa Romeo and Citroën, call for a postponement of the 2025 targets, which could cost automakers billions of euros in fines if not met.

ACEA's proposal is backed by other automakers including Renault whose CEO, Luca De Meo, is also the lobby's president. Stellantis is not part of ACEA.

The dealers’ letter adds: “These fines would inevitably lead to a reduction in production volumes within the EU, which in turn will drastically decrease the volumes we, as distributors, can sell.

“Stellantis' distribution networks are experiencing significant challenges in meeting the stringent targets for EV sales, imposed by both the manufacturer and upcoming EU regulations, while market conditions do not yet support such volume growth. We are in daily contact with end customers who frequently reject [B]EVs due to concerns over price, range, and accessibility.”