“The objectives are unviable.” Carlos Tavares said Stellantis was ready to meet the transition to the electric car. Their own dealers believe it is impossible

The situation is, to say the least, strange. While Carlos Tavares He has been repeating for several weeks that he wants to keep the CO₂ emissions limits set for 2025, Stellantis dealers in Europe ask otherwise.

In one addressed letter to the president of the European Commission, Ursula von der Leyenthe presidents of the four European associations that represent the Stellantis dealers of all the group’s brands warn of the dark situation in sales of electric cars.

The current market would not allow the objectives to be achieved

“Stellantis’ distribution networks are currently facing major challenges in meeting strict electric vehicle sales targets imposed by both the manufacturer and future EU regulations, while market conditions do not yet allow for such volume growth. ”, they wrote to the President of the European Commission.

“As daily points of contact with consumers, we are observing a growing reluctance on the part of customers to buy electric cars,” they say. The distributors, who support the request of the ACEA (the European association of car manufacturers) for greater flexibility, add: “We are convinced that the objectives of reducing CO₂ emissions set for 2025 are not achievable under current market conditions.

The Stellantis group has about 14 brands under its umbrella, and although not all of them are sold in Europe, the group’s dealers have some weight. “The companies we represent are an essential pillar of the automotive sector, since they employ around 13 million people, that is, around 6.6% of the European workforce,” they recall.

Let us remember that the European Union regulations set the objective for 2025 that the average emissions from manufacturers’ sales cannot exceed 93.6 g/km of CO₂. Manufacturers with a good share of sales of electric and plug-in hybrid PHEV models should have no difficulty achieving that average of 93.6 g/km.

The EU leaves a little margin (up to 98 g/km) as long as they sell more than 25% electric cars or PHEVs. That is, a brand has to sell at least one electric car or PHEV for every gasoline or hybrid car it sells. There are many brands that warn that they are going to exceed the limit and that they do not sell as many electric vehicles to compensate for it, so they ask for more flexibility in the limits.

In August 2024, electric cars accounted for 14.4% of the EU market, up from 21% a year earlier, while plug-in hybrids accounted for 7.1% of the total car market, according to ACEA data. Even so, many other brands are not in favor of changing the limits decided in Brussels, such as Volvo.

However, the CEO of the Stellantis group, Carlos Tavares, is of the opinion of not changing anything: “The rules have been known for several years. “My boys are ready for the fight,” he told reporters in Turin on September 17.

In a recent interview with ChallengesTavares attacked the EU for the imposition of these limits, but recognizes that there is no turning back now. “The politicians felt humiliated by this manufacturer (in reference to the Volkswagen Dieselgate scandal) and decided to make the entire automobile industry pay for it. The decisions were made in 2018 without any impact assessment. The European Union’s strategy was stupid”said an exasperated Tavares.

But if it is reversed, “who is going to return our investment,” he asked, adding: “now that the decisions have been made, I am not in favor of changing the rules. I have a regulatory framework and I respect it. Manufacturers who are late are cicadas. Meanwhile, ants like Stellantis have been at work.”