Stellantis Set to Benefit from EU’s Relaxed CO2 Rules

The European Commission’s recent proposal to ease strict emissions targets is set to provide a massive advantage for automakers like Stellantis. This policy shift, designed to help the auto industry stay competitive during the green transition, could lift Volkswagen and Stellantis’ earnings by nearly €3 billion ($3.2 billion) according to Bloomberg Intelligence.

The relaxed rules allow manufacturers to exceed tighter 2025 emissions targets without facing heavy fines, offering a three-year window for automakers to catch up on compliance. This move comes after growing pressure from the industry, with companies like Volkswagen and Stellantis already reconsidering their electric vehicle (EV) strategies due to slower-than-expected demand.

Stellantis, which owns brands like Peugeot, Fiat, Opel, Alfa Romeo, and Maserati, has been shifting focus toward hybrid models after stepping back from aggressive EV plans. Following the departure of former CEO Carlos Tavares in December, the company has been rapidly adjusting its lineup to balance emissions goals with market demand.

A notable example of this shift is Maserati’s decision to shelve its all-electric supercar plans, opting to cater to customers still favoring high-performance combustion engines. This pragmatic approach aligns well with the EU’s more flexible emissions timeline.

With the proposed three-year grace period, Stellantis and other automakers can avoid immediate penalties while working toward longer-term climate goals. This balance of industry support and environmental responsibility aims to keep the EU’s vision for a zero-emissions future on track without jeopardizing automakers’ financial stability.

As the European Parliament and member states review the policy, the automotive world watches closely. If approved, this change could reshape emissions strategies and product planning across the industry.

Source: Bloomberg