The head of one of the biggest car concerns is proposing big emission targets. Otherwise, they say, we will not catch up with China – Garáž.cz

Canceling the European Union’s 2025 emissions targets will only mean that European carmakers will fall further behind their Chinese rivals. This was said by Carlos Tavares, CEO of the fourth largest car group in the world Stellar.

Several car manufacturers, including Renault and Volkswagen, and the European Automobile Manufacturers Association have asked the European Union to review, suspend or change fleet emissions (emission targets) for 2025. These about 15% harder than before and, as a result of falling. demand for electric cars, there is a risk that automakers will not comply and face heavy fines.

Fleet emissions refer to manufacturers that put more than a thousand cars on the market in a year. Each manufacturer has a fixed average limit of grams of CO2 every kilometer. If it does not fit this limit, it pays a fine of EUR 95 (CZK 2,400) to the European Commission for each gram above the specified average for each car placed on the market.

Recent estimates suggest that car manufacturers will have to pay 15 billion euros (379 billion kroner) on these tithes. And guess who pays for it? A customer.

Carlos Tavares, under which is due to the poor financial results of Stellantis she broke the chairhowever, the group said it is ready for new targets that correspond to a European electric car market share of 20 to 25%. Currently, electric cars have a share of about 15% in the European market. In the Czech Republic, about 2.5%, however, because subsidies (recently terminated) this number will increase by leaps and bounds (and probably only for a short time).

However, draconian fines can be avoided by shopping around emission credits or group formationon which, for example, Tesla earned more than on cars. While Tavares sees the objectives of Stellantis achieved not by buying credits (you pay​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​in order to issue more emissions), but in creating a group (the that, however, distributions are divided for money), the CEO of Groupe Renault Luca de Meo said that he would be open to buying credits, if it meant avoiding fines.

Renault’s boss also said the strict emissions targets will force the manufacturer to push sales of electric cars and limit the production of cars with internal combustion engines. And that can turn out like Fiat (part of Stellantis), which had to in the final to temporarily stop the production of electricity five hundredbecause no one wanted it.

De Meo has previously said that Chinese brands can develop a car in two years, a time that would not have been possible. Now he sees the situation differently and knows that this race cannot escape.

Tavares defends the strict emissions targets to draw attention to stiff competition from China, which, thanks to subsidies, produces electric cars a third cheaper than European carmakers. AND punitive taxes imposed by the EU? So the Chinese slowly and legallyfor example by building factories outside China.

“We have to raise our game. Every second we spend on rest is the time we lose to improve,” said the head of Stellantis.

It is also based on the fact that Stellantis bought an interest in the Chinese Dolphinfind it partly how the Chinese do it. “We see that if you want to fight the Chinese, you need the same cost structure. It’s not rocket science, we can do it,” Tavares said.

Taveres finally finished his speech with a reference to ethics, global problems of the planet (fires, hurricanes and others), which he put above the profits of car companies.

So there is no clarity of opinion even among the heads of major car companies. For the customer, tougher emission targets may ultimately mean higher prices for cars, but for the automaker itself, the delayed move to electromobility may fail. That is, assuming that electric cars really will be the future of the European car industry.