Automotive News Europe — 2025-11-25
Automotive Industry
Stellantis Chairman John Elkann warned that the European auto industry risks an “irreversible decline” if the European Union does not soften its stance on cuts in CO2 emissions to grant automakers more flexibility.
The European Commission is due to present proposals on Dec. 10 as part of its scheduled review of EU carbon-emissions regulation for the industry.
Elkann said the industry as a whole had drawn up a package of proposals for the European Commission to give automakers more flexibility on emissions targets. This would allow the sector to avoid such decline, he said.
“There is another way to cut emissions in Europe in a constructive and agreed way, restoring the growth we have lost and meeting people’s needs,” Elkann said during an event on Nov. 25 to mark the start of production of the new hybrid version of the Fiat 500 battery-electric car.
The auto industry’s proposals include allowing plug-in hybrids, extended-range EVs and alternative fuels to be sold beyond 2035 when a planned zero emissions mandate will ban the sale of new gasoline and diesel cars across the EU.
Other proposals include averaging 2030’s interim carbon reduction goals over several years, introducing a wide vehicle scrappage program and adapting regulation to favor small car production.
Car registrations in Europe were about 13 million units last year, still below a 15.8 million unit pre-Covid level in 2019.
New Stellantis CEO Antonio Filosa said talks with European authorities had been long and in-depth but now the industry needed “urgent and definitive action.”
“If we are allowed to win back customers with excellent products such as the 500 hybrid, we will certainly be able to restore the growth that is essential for future investment and innovation ... supporting employment in Europe,” Filosa said during the event.
The Stellantis top management did not elaborate on possible consequences that tough European rules could have for the auto industry.
Earlier this year, the group’s former Europe chief, Jean-Philippe Imparato, warned Stellantis might have to close factories due to the risk of hefty EU fines linked to CO2 emission targets.
Gianluca Ficco of the UILM union said the EU needed to change rules for the auto industry, “before it’s too late” to avoid tough consequences for the industry and jobs.