Renault warns that it could reduce European car production if the EU does not make its CO2 targets more flexible

French automaker Renault could cut its European production by nearly 300,000 vehicles if the European Union does not make its strict CO2 emissions targets more flexible. The warning was issued Tuesday at the Paris Auto Summit by CEO François Provost, amid slowing demand for electric cars.

Provost said that, in the absence of flexibility mechanisms for the 2030 targets, he could propose that the board reduce production in Europe. The measure would primarily target vehicles with internal combustion engines and would be an alternative to paying substantial fines, as electric vehicle sales are not reaching the required level.

European automakers are calling for CO2 targets to be phased in or calculated as an average over several years. The industry warns that collective fines could reach €15 billion. For 2030, the EU provides for a 55% reduction in emissions from passenger cars and a 50% reduction for vans. From 2035, all new cars and vans registered in the bloc should have zero CO2 emissions, with any exceptions and adjustments to be negotiated. Petrol- and diesel-powered cars already registered will be allowed to remain in use and be sold on the second-hand market.