Published by Global Banking & Finance Review®
Posted on July 1, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleStellantis may close factories due to EU carbon fines. The automaker faces penalties up to €2.5 billion if CO2 targets aren't met, requiring a shift to electric vehicles.
ROME (Reuters) -Stellantis may have to close factories due to the risk of hefty European Union fines for not complying with CO2 emission targets, the head of the Franco-Italian automaker for Europe said on Tuesday.
European car manufacturers have to sell more electric vehicles to cut CO2 emissions or risk penalties as part of the bloc's efforts to limit the catastrophic effects of climate change. The automaker industry has successfully lobbied for more time to comply, as fines will be based on 2025-2027 emissions rather than just in 2025.
Stellantis' Europe chief Jean-Philippe Imparato said the targets were still unreachable for automakers, and exposed his company to fines of up to 2.5 billion euros ($2.95 billion) within "two-three years."
Speaking at a conference in the lower house of parliament in Rome, he said that without significant changes in the regulatory situation by the end of this year, "we will have to make tough decisions."
This is because Stellantis would either have to double its electric vehicle sales, which is impossible, or cut the production of petrol and diesel vehicles, Imparato said, so as to improve the energy mix of its fleet in favour of electric.
"I have two solutions: either I push like hell (on electric) ... or I close down ICE (internal combustion engine vehicles). And therefore I close down factories," he said, at one point mentioning the Italian van-making plant of Atessa.
($1 = 0.8489 euros)
(Reporting by Alvise Armellini; Editing by Aurora Ellis)
Stellantis may face hefty fines of up to 2.5 billion euros for not complying with CO2 emission targets set by the European Union.
Stellantis is considering either significantly increasing electric vehicle sales or cutting production of petrol and diesel vehicles to meet emission targets.
Jean-Philippe Imparato stated that the emission targets are still unreachable for automakers and warned of tough decisions if regulatory changes do not occur.
If Stellantis does not adapt, it may have to close down factories due to the inability to meet the EU's CO2 emission requirements.
Imparato indicated that Stellantis could face fines within 'two to three years' if they do not comply with the emission targets.
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