Finance
Europe's carmakers should steer clear of defence industry, Stellantis' Elkann says
Published by Global Banking & Finance Review®
Posted on March 19, 2025
3 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 19, 2025
3 min readLast updated: January 24, 2026
Stellantis' John Elkann advises against a shift to the defence industry, confirms new CEO timeline, and announces a €2 billion investment in Italy.
By Giulio Piovaccari and Angelo Amante
ROME (Reuters) - The chairman of Stellantis said on Wednesday that Europe's automotive industry does not need to convert to defence production, while confirming the group is on course to appoint a new CEO in the first half of this year.
As European counties discuss a big increase in defence spending, Italy's Industry Minister Adolfo Urso said this week that Rome was preparing an industrial plan aimed at fostering connections between its automotive, defence and aerospace sectors, to be unveiled in June.
Addressing the Italian parliament, Stellantis Chairman John Elkann said U.S. and China both maintained strong defence and automotive industries, meaning there was not a choice to be made between the two.
"We don't think the future of the car is the defence industry," said Elkann, whose multinational group includes brands such as Fiat, Jeep and Peugeot.
Elkann -- who has been steering Stellantis since former CEO Carlos Tavares suddenly left in December following a shock profit warning and divergences with the board -- confirmed the succession process was going ahead to the planned timetable.
"The new CEO will be announced within the first half of the year," he told lawmakers.
Elkann is part of the Agnelli family that founded Fiat and is Stellantis largest shareholder through its investment company EXOR.
Elkann on Wednesday also confirmed Stellantis was investing 2 billion euros ($2.2 billion) in Italy this year as part of a plan it presented to Rome after the departure of Tavares to revitalise its output in the country.
The current year would be another tough one, Elkann said, but production in Italy should start to pick up in 2026, helped by 10 new product updates. However he injected a further note of caution, saying tariffs and the shape of the market would influence output.
The plan helped to improve relations between Italy's sole major automaker, which employs around 40,000 people in the country, and Rome after months of bitter confrontation.
However, some political tensions remain.
The League party, part of Prime Minister Giorgia Meloni's right-wing coalition, on Wednesday said Stellantis was favouring investments and jobs abroad and had an excessive focus on EVs.
"Elkann should apologise to Italian workers," the League said in a note released after the hearing in parliament.
Stellantis last year manufactured fewer than 500,000 vehicles in Italy, down from 751,000 in 2023, with car production in particular at its lowest since 1956.($1 = 0.9179 euros)
(Reporting by Giulio Piovaccari; Editing by Keith Weir)
The main topic is Stellantis' position on the automotive industry's shift to the defence sector.
John Elkann confirmed the appointment of a new CEO within the first half of the year.
Stellantis announced a €2 billion investment in Italy to enhance production.
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