Electricity market in decline: European manufacturers risk 15 billion euros in fines, according to Renault boss

European carmakers face fines of pound 15 billion if they fail to comply with EU emissions rules as sales of electric cars slow on the old continent, Renault group boss Luca de Meo warned on Saturday, asking for "a little flexibility." To comply with CO2 emissions standards calculated as an average of all cars sold, manufacturers will have to reduce their production by "more than 2.5 million vehicles" to avoid being fined, Mr. de Meo, who is also president of the European Automobile Manufacturers Association (ACEA), warned on France Inter. The reason: one electric vehicle can offset four combustion-engine cars. "We are preparing for 2025 now because we are taking orders for the cars we are going to deliver. And there, according to our calculations, if the electric remains at today's level, the European industry will perhaps have to pay 15 billion euros in fines or give up the production of more than 2.5 million" units, he explained."We need to be given some flexibility," he argued. "Simply setting deadlines and fines without the possibility of making that more flexible is very dangerous."In August, electric vehicles represented only 12.5% ??of the European automobile market, with a 10.8% drop in sales over one year.The Renault leader also stressed the importance of the electricity market for European industrial battery manufacturing projects."If electric cars don't sell, these projects will have difficulties," he warned.To explain the lack of vigor in the market, Mr. de Meo cited the still high prices, but also the slow installation of charging stations and "uncertainty" over purchase subsidies, removed for example last December in Germany, leading to a drastic drop in sales.Regarding this aid, "we need stability, visibility" and "a certain coherence", argued the boss of Renault, while the 2025 French budget could see cuts.Symbol of the crisis facing the European automobile industry, under strong pressure from Chinese competition: the largest European manufacturer Volkswagen has announced that it is preparing an unprecedented savings plan that could lead to factory closures in Germany.A fate that should spare Renault, having already made the savings, assures Mr. de Meo: "a few years ago, we had to go on a very tough diet" by reducing production capacity "by more than a million vehicles" but "the context is very, very complicated."Source: Burkina Information Agency