Automaking giant Stellantis is reportedly looking to slash production of some of its internal combustion engine (ICE) products to comply with strict 2025 EU emissions targets. Failure to meet these targets could see the automaker facing stiff fines from the EU.
Newly installed COO of Stellantis' operations in Europe, Jean-Philippe Imparato, recently told Automotive News Europe that the production cuts could commence as early as next month. He also said the firm may double its EV share next year to 24% of total vehicles to meet said targets.
Updated EU emissions ruling, which take effect starting Jan 1, 2025, dictates an overall fleet CO2 emissions target of 95 g/KM - this was previously set at 106.6 g.KM and enforced since 2023. Automakers missing this target can face fines of €95 (RM445.61) per excess gram per vehicle.
In light of which, Imparato has said that his “first task is to align production for vehicles sold in the first quarter of 2025,” by the first week of Nov. The exec also added that Stellantis has several ways it can attempt to boost its EV sales further.
Amongst the latter is increasing dealer incentives on EVs, providing rewards across the entire distribution chain, including zone managers and sales personnel. The firm could also look into increasing the prices of its ICE models “on a flexible basis, by model, brand, and market.”
Beyond which, Stellantis could also help dealers with their residuals in light of the fact that many of which recently returned EVs from lease agreements from 2021 and 2022. Stellantis could also leverage on long-term value of EVs and effectively sell one three times – once through an initial lease, and twice more as used vehicle leases.
Critical to this could be the Leapmotor brand – Stellantis’ latest venture where the firm owns a 51% controlling stake in said Chinese EV marque’s international arm. It sales will count into the group’s overall emissions figures and should help Stellantis meet emissions targets.