Renault Group CEO Luca de Meo has warned of potential fines of up to 15 billion euros that European car manufacturers could face if they fail to meet the European Commission’s climate targets amid the ongoing crisis following the drop in electric vehicle (EV) sales.
“The European industry has already committed around 250 billion euros in investments, so we need to keep the business running,” the executive stated in an interview with France Inter.
He also admitted that the group could face a major crisis in its operations in France.
De Meo has repeatedly called on the European Commission for “flexibility” regarding upcoming EV sales targets and the installation of charging points across different European countries, in a context where Brussels is expected to confirm the ban on the sale of combustion cars from 2035.
The Renault CEO states that, at present, the sector in Europe is facing a severe recession, with Germany’s Volkswagen considering closing several factories in Germany for the first time in its 87-year history.
Meanwhile, last week, the French CGT union reported that Renault is considering the possibility of cutting jobs in the country over the next three years, including in engineering.
“For 25 years, the European automotive industry has had a 30% excess capacity,” De Meo admitted.
According to the brand’s head, with the current levels of electric vehicle sales, manufacturers would need to cease the production of 2.5 million combustion cars or face the fines set by the European Commission.
Read more: eMobility investments: How can Europe secure its leadership in the global market?
