Giant car firm behind 14 brands including Fiat & Peugeot ‘faces closing factories' over EV targets, boss says

The Irish Sun

3 days ago

THE giant car firm behind 14 brands including Fiat and Peugeot may have to close factories over EV targets, its boss says.
European car manufacturers are having to sell more electric vehicles to cut CO2 emissions - or risk crippling penalties.
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The giant car firm behind 14 brands including Fiat and Peugeot may have to close factories over EV targets
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Stellantis may have shut some of its factories doors
Stellantis may have shut some of its factories doors due to the risk of hefty European Union fines for not complying with CO2 emission targets, the chief of the Franco-Italian automaker for Europe said on Tuesday.
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 slammed the targets, saying they were still unreachable for automakers.
He then exposed his company to fines of up to 2.5 billion euros within "two-three years."
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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."
Stellantis would therefore either have to double its electric vehicle sales, which is impossible, or cut the production of petrol and
diesel
vehicles, Imparato said.
"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.
Meanwhile discussions
over the
future
of Maserati remain ongoing as
Stellantis
prepared to welcome its new CEO.
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New CEO Antonio Filosa faces huge financial decisions as a result of President Trump's brutal trade tariffs.
Stellantis - which owns 14 brands across the globe - was
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McKinsey was called in April this year to advise on struggling brands Maserati and Alfa Romeo, with both experiencing a dire 2024.
Last year, the number of Maserati units sold plunged from 26,600 to just 11,300.
Stellanis told
Trump's new legislation means tariffs of at least 25 percent on anything imported into the US.
Maserati has no new model launches scheduled as it waits for a new business plan, with the last one having been put on hold by Stellantis in 2024.
The plan is expected to be presented soon after Filosa starts his new role.
But as things stand, it is understood that all options remain on the table for the world-renowned Italian brand.
It came after the global firm pulled the plug on a £1.3billion investment in Maserati earlier this year.
What is Stellantis?
Stellantis is the company behind iconic motor brands such as Fiat, Vauxhall and Peugot.
The conglomerate, which is the second-largest maker of cars in Europe, owns 14 badges, including Chrysler, Citroen, Jeep and Maserati.
The company itself is the product of a merger between Fiat-Chrysler and France's PSA, the maker of Peugeot and Citroen, in 2021.
But the motoring giant has encountered increasingly stuttering financial success.
And an initial manufacturing break at Stellantis has now been extended as bosses report a collapse in demand for electric cars.