European dealers representing Stellantis brands have voiced their support for a proposal from the European Automobile Manufacturers’ Association (ACEA) to delay upcoming carbon emission reduction targets set by the European Union for 2025.
In a letter addressed to European Commission President Ursula von der Leyen, the dealer groups expressed concerns that market conditions do not support the feasibility of these goals.
“We firmly believe that the CO2 reduction targets set for 2025 are unfeasible under current market conditions,” the letter stated, highlighting a position at odds with Stellantis’ own commitment to meet EU regulations. This adds pressure on Stellantis CEO Carlos Tavares, who has faced recent challenges due to the company’s falling market share and rising inventories.
Despite Stellantis confirming its commitment to the EU’s carbon reduction goals, the company issued a profit warning for the full year and forecast a negative cash flow.
The dealer groups, which sell brands such as Peugeot, Jeep, Fiat, Alfa Romeo, and Citroën, argued that missing the 2025 targets could lead to billions in fines and reduced production volumes, affecting their ability to sell vehicles.
Amid weakening global demand for electric vehicles (EVs), the dealers echoed concerns about high EV prices, limited charging infrastructure, and customer reluctance. “We are in daily contact with end customers who frequently reject EVs due to concerns over price, range, and accessibility,” the dealers noted, calling for a postponement of the stringent CO2 targets.
Source: Reuters
