Crisis at automotive giant Stellantis: Production facilities may close

The increased environmental standards within the scope of climate policies may force Stellantis to make serious decisions. It is assessed that the company may have to close some of its factories in the coming years due to the financial burden of emission penalties.

The company has two options: either dramatically increase sales of electric vehicles to cut carbon emissions or risk paying hefty fines as part of EU plans to combat the climate crisis.

FINES UP TO 2.5 BILLION EUROS ARE COMING

While the auto industry has called for more time to comply, Imparato said the targets were still out of reach for automakers, exposing his company to penalties of up to 2.5 billion euros over "two to three years".

'WE WILL HAVE TO MAKE DIFFICULT DECISIONS'

Speaking at a conference in the lower house of parliament in Rome, Imparato said that if significant changes were not made to the regulatory situation by the end of this year, "we will have to take difficult decisions."