Stellantis warns of FACTORY CLOSURES amid EU’s crippling EV fines

• Stellantis, owner of brands like Citroen and Fiat, warns it may shut down European factories due to crippling EU fines (up to €2.5 billion) for failing to meet strict EV sales targets.
• The EU’s aggressive CO2 rules force automakers to either rapidly increase EV sales – despite weak consumer demand – or cut production of profitable gas-powered cars, risking financial ruin.
• Stellantis has already closed a historic U.K. plant (1,100 jobs at risk), while Audi, Skoda and Volkswagen face similar cuts, highlighting the human cost of the EV transition.
• High EV prices, charging infrastructure gaps and battery concerns deter buyers, yet regulations push automakers to prioritize compliance over market realities.
• The EU’s punitive fines and rigid quotas may drive production out of Europe, harm the economy and fail to meaningfully reduce emissions, raising doubts about the sustainability of its green agenda.

Stellantis, one of the worlds largest automakers, has issued a stark warning. It may be forced to shut down factories across Europe due to punishing fines imposed by the European Union for failing to meet aggressive electric vehicle (EV) sales targets.

The company – which owns iconic brands such as Citroën, Fiat, Peugeot and Vauxhall – says the Brussels strict CO? emissions rules could cost it up to €2.5 billion ($2.94 billion) in penalties within the next three years. This financial burden could leave the Netherlands-based Stellantis no choice but to cut production and eliminate jobs.

Despite a slight reprieve last year, when the auto industry successfully lobbied to delay full enforcement of the rules from 2025 to 2027, company executives argue the targets remain unrealistic. The company faces an impossible dilemma. It could either push EVs onto reluctant consumers or slash production of traditional gas-powered cars, both of which could devastate its bottom line. (Related: Germany’s EV sales plummet as demand in Europe declines.)

The core of the crisis lies in the EU’s stringent CO2 emissions policy, which forces automakers to drastically reduce their carbon footprint by selling more electric vehicles. Under current regulations, manufacturers must ensure EVs make up an ever-growing percentage of sales – or face crippling fines.

“I have two solutions,” Stellantis” European chief Jean-Philippe Imparato recently told Italian lawmakers. “Either I push like hell on electric [cars] … or I close down ICE [internal combustion engine] factories.”

Stellantis is already making painful cuts. Earlier this year, the company shuttered Vauxhall’s historic Luton van factory in the United Kingdom. The closure of the plant, which had operated for over a century, putting 1,100 jobs at risk.

While some workers were offered positions at an EV facility in Ellesmere Port, the closure marked the end of an era for British auto manufacturing. The shutdown was directly tied to the U.K.’s Zero Emission Vehicle mandate, which requires automakers to sell an escalating percentage of EVs each year.

Is Europe’s green dream collapsing?

Similar shutdowns are happening across Europe, with Skoda considering laying off 6,000 workers amid its own EV struggles. Audi closed its Brussels EV factory in December, cutting 3,000 jobs. Meanwhile, Volkswagen nearly shut three German plants before reaching a last-minute deal with unions.

Despite heavy government subsidies and relentless marketing, EV adoption remains sluggish. High prices, limited charging infrastructure and concerns over battery longevity have left many consumers hesitant to switch from gasoline cars.

Automakers warn that forcing EVs onto the market before demand is ready could backfire. If companies like Stellantis are compelled to slash production of gas-powered cars – which still dominate sales – they risk losing customers to competitors outside Europe, where regulations are less strict.

The EU’s approach prioritizes punishment over practicality. Instead of allowing the market to evolve naturally, regulators are imposing top-down mandates that punish companies for failing to meet arbitrary sales quotas. Stellantis now faces an exorbitant fine unless it can somehow double EV sales, something Imparato has called “unreachable.”

With the EU refusing to adjust its demands, automakers are left with few good options. Some may move production outside Europe to avoid penalties, while others will cut jobs and close plants to survive.

The Stellantis crisis is a warning sign. The EU’s aggressive push for EVs is clashing with economic reality. Instead of fostering innovation, these policies are driving job losses, factory closures and financial instability – all while failing to address the real barriers to EV adoption.

Watch this video about EVs potentially causing cancer.

This video is from the WAKE UP channel on Brighteon.com.

More related stories:

Sales of electric vehicles in Germany COLLAPSED in 2024, declining by 27%.

Volvo CUTS FUNDING to subsidiary Polestar, which produces electric vehicles.

Electric car sales growth slows by nearly 50% in 2023.

Sources include: 

DailyMail.co.uk

MSN.com

ThisIsMoney.co.uk

Brighteon.com