Stellantis may be forced to shut down factories in Europe if it cannot meet the European Union’s CO2 emissions targets, the automaker’s Europe chief said on Tuesday, as stricter climate regulations put increasing pressure on manufacturers to accelerate their transition to electric vehicles (EVs).
The EU’s regulatory framework requires automakers to reduce fleet-wide emissions or face significant penalties. While industry lobbying has helped defer some of the compliance deadlines—with fines now tied to emissions over 2025–2027 rather than solely in 2025—carmakers still face steep targets.
Jean-Philippe Imparato, head of Stellantis’ European operations, said at a conference in Rome that the company risks fines of up to €2.5 billion ($2.95 billion) within the next two to three years unless regulatory conditions change. He warned that meeting the emission targets would either require an unfeasible doubling of EV sales or a drastic reduction in the production of internal combustion engine (ICE) vehicles.
Imparato said that in the absence of significant regulatory changes by the end of the year, Stellantis could be forced to take “tough decisions,” potentially including the closure of factories producing petrol and diesel vehicles. One such facility mentioned during his remarks was the company’s van plant in Atessa, Italy.
Stellantis, formed through the merger of PSA Group and Fiat Chrysler Automobiles, is among several automakers under pressure to scale up EV production in the face of tightening emissions rules. The company has pledged to electrify its lineup but faces challenges tied to infrastructure, consumer demand, and affordability in key markets.