There has been frequent talk in recent days about the problems for European dealers, who accuse Stellantis CEO Carlos Tavares of failing to take meaningful measures to improve the situation for dealers in this difficult market. Now, the group’s dealers themselves are sounding an alarm regarding new European emission regulations that threaten to seriously jeopardize the stability of their work. Indeed, it is believed that the target is too ambitious, for the means that both actually have at their disposal.
Dealers against Stellantis turn to the European Commission
European Stellantis dealers have sent a letter to European Commission President Ursula von der Leyen. In it, they expressed great concern in reference to the new emission limits that will be in effect as early as next year. For dealers, the target in question would be too ambitious in too little time with the current situation that the market presents. Indeed, large declines in sales are underway, especially in electric vehicles.
In this very regard, Federauto, the dealer federation, has highlighted these concerns. Indeed, the federation has pointed out that current European regulations are putting too much pressure on dealers’ real opportunities, as electric cars are still not selling as they should. In fact, there are numerous sales networks that have been forced to register a high number of electric cars, despite the fact that consumer demand has remained low. A situation that only generates high costs for companies, due to the continuous accumulation of unsold stock and vehicles that gradually become obsolete.
The registration practice we have been talking about, would be a kind of “office allocation” of electric vehicles, even without there being any real demand from customers. This is a completely unfair practice in several respects. In fact, on the one hand we see dealers being forced to register cars that really have not been sold. In addition, this practice is falsifying all dealer sales data. As a result, all statistics, whether monthly or quarterly belonging to the entire Stellantis group, can never be real and numerically correct.
Heavy consequences and Tavares called to speak on Senate floor
The consequences of these policies could generate disastrous consequences for the dealer, which would consequently be reflected throughout the automotive industry. In fact, if auto manufacturers have to mandatorily reduce production of internal combustion cars to meet emission limits, there will be a further decline in sales that could also cause countless dealerships to close. An event that would negatively impact employment, jobs, the environment and road safety.
So, the current week is getting particularly intense especially for Carlos Tavares. The CEO in fact, next Friday, will be called to the Senate before the members of the Productive Activities Commission to state what the company’s prospects are regarding the difficult situation. The dealers therefore remain waiting for news, having requested to postpone the 2025 targets to at least 2027, or otherwise to an extension, there will be a need to drop to 95 gCO2/km, with the consequences we have just discussed.