Europe's second-largest carmaker takes stand against EU's vehicle emissions target delay for automakers

Europe's second-largest carmaker, Stellantis NV, is standing firm against potential efforts by the European Union to delay the implementation of stricter emissions regulations scheduled for next year. The company's stance signals a brewing conflict with other manufacturers who may favour postponing the environmental targets.

As the EU mulls adjustments in the face of ongoing industry pressures, Stellantis' position underscores the carmaker's commitment to meeting the climate goals on time, setting up a potential divide within the automotive sector over the future of emissions policy in the region.

Stellantis's Chief Executive Officer Carlos Tavares said, "It would be surreal to change the rules now."

Moreover, Tavares added, “Stellantis has prepared EVs and has established the ability to sell them. Everyone has known about the rules for a long time and has had time to prepare, and so now it's time to have a race."

However, a Stellantis spokesperson confirmed the remarks and issued a company statement advocating the retention of current regulations. The statement emphasises the need for ongoing government subsidies to support consumers purchasing electric vehicles.

The European Automobile Manufacturers' Association (ACEA), led by Renault SA CEO Luca de Meo, has proposed that the EU delay implementing certain targets set for 2025 by two years. De Meo has also advocated for greater flexibility in the EU regulations.

On the other hand, Carlos Tavares, CEO of Stellantis, made a strategic decision in 2022 to withdraw the company from ACEA. Since then, Stellantis has been on a new trajectory, focusing on cost reduction, introducing innovative new models, and positioning itself as a formidable competitor against Chinese manufacturers and Tesla. This strategy shift will pique the interest of industry professionals and investors alike.

ACEA released a statement on September 12 stating that “The EU automotive industry has invested billions in electrification to put vehicles on the market, but the other necessary ingredients for this transition are not in place, and the EU's competitiveness is eroding.”

Europe’s automotive industry is grappling with several challenges: competition from affordable Chinese models, soaring energy costs, and sluggish consumer demand. As a result, sales continue to lag significantly behind pre-pandemic levels.

Global aluminium usage in transportation by end-use, 2023 (%)

Total usage: 27.5 million tonnes

Electric Vehicles to spark a surge in aluminium demand

The automotive industry's demand for aluminium is expected to surge by 15-27 per cent, driven by the growing prevalence of electric vehicles (EVs). Compared to traditional internal combustion engine cars, plug-in hybrid and full battery electric vehicles utilize 25-27 per cent more aluminium, with a baseline of 160kg per vehicle in internal combustion engines.

While the rise in aluminium usage in traditional cars is mainly attributed to the weight reduction benefits, the surge in aluminium demand for EVs is equally influenced by innovative applications beyond the use of aluminium body sheets. This shift highlights a broader transformation in the automotive industry as it adapts to the unique requirements of electric vehicle technology.