Stellantis is eying production cuts in several of its global markets, but the reasoning is different depending on where you look. In North America, the automaker may cut output to clear unsold dealer inventory, but in Europe, Stellantis may have to slash production numbers to meet increasingly strict emissions rules.
The company’s European COO, Jean-Philippe Imparato, said the cuts could come as soon as November in a push to meet the new regulations that start on January 1, 2025. Companies selling more SUVs and larger vehicles will be impacted more than others, and the consequences for failing to meet the new standards is a 95 euro per excess gram of carbon per vehicle. According to Barclays Bank, that could add up to more than ten billion euros in fines across the industry.
Though the changes in the rules will be a challenge for automakers in Europe, there are no signs that government leaders plan to slow down. Regulations will tighten again in 2030, and by 2035, vehicle fleets must average zero grams of carbon per kilometer, marking the end of gas vehicles on the continent.
Stellantis could refocus its efforts to produce more EVs, but they aren’t flying off dealers’ lots. Despite being more popular and widely available in Europe, EVs make up a small percentage of the overall market, with a 14.7 percent market share in September.
[Images: Stellantis]
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