Renault's CEO warns that Europe's auto industry could face fines of up to €15 billion due to emissions regulations, as the demand for electric vehicles begins to slow.

Renault's CEO, Luca de Meo, warned on Saturday that Europe's automotive industry could be hit with €15 billion ($17.4 billion) in fines due to a slowdown in electric vehicle demand. Automakers are facing stricter EU CO2 regulations in 2025, as the emissions cap for new vehicles drops to 94 grams/km from 116 g/km in 2024. De Meo stated in an interview with France Inter radio that if electric vehicle sales remain at current levels, the industry could either face these heavy fines or be forced to cut production by over 2.5 million vehicles. He emphasized that the rate of electric vehicle adoption is only half of what’s needed to meet the targets and avoid penalties.