The President of Stellantis, John Elkann, has issued a dire warning to the European Union. Ease up on the stringent green car rules or risk sending the entire automotive sector into a tailspin. Speaking ahead of the EU Commission’s December 10th policy announcement, Elkann framed the moment as a true “turning point”. He argues that without policy changes, Europe faces an “accelerated decline” in an industry that employs over 13 million people.
The industry’s panic is understandable. European car sales haven’t rebounded to pre-pandemic levels. Aggressive Chinese competitors are flooding the market with tech-heavy EVs. And the specter of a trade war initiated by Donald Trump is destabilizing supply chains and corporate balance sheets.
Elkann’s proposed solution is a delightful mix of self-interest and environmental concern. First, he wants Brussels to fundamentally reconsider the 2035 regulation that effectively kills the production of new internal combustion engine cars. Second, he demands Technological Neutrality. This would allow alternative, non-battery-electric solutions to count towards zero-emission targets.
But the political magic lies in emissions calculation. Elkann wants future CO2 reduction targets averaged over a five-year period (2028 to 2032), a tactic previously employed by the Commission to help carmakers avoid crippling fines.
Elkann wants the EU to introduce a program to eliminate old, highly polluting cars from Europe’s roads. Stellantis wants credit for every tonne of CO2 reduction achieved by scrapping an old clunker. This would allow carmakers to hit future emission goals without having to dramatically curb their profitable current ICE car sales.
This plea comes as Stellantis continues to navigate choppy waters, particularly in the US where they’ve pledged a $13 billion investment spree following the Trump administration’s rollback of EV policies and tariff increases on European cars. Despite the gloomy warnings from Elkann and CEO Antonio Filosa, Stellantis posted a healthy net revenue of €37.2 billion in the third quarter of this year, a 13% increase year-over-year, alongside a €2 billion shareholder dividend payout in April.
