Stellantis CEO backs German push to ease EU car emissions rules ahead of key review

MILAN, Dec 1 (Reuters) - Stellantis Chief Executive Antonio Filosa on Monday welcomed Berlin's call to soften European Union car emissions rules, saying Germany's proposals aligned with industry demands to revive growth in the struggling sector.

The European Commission is due to unveil proposals for a package to support the auto sector on December 10, including for a review of carbon-emission targets amid mounting pressure from governments and manufacturers to be more flexible and allow plug-in hybrids and new fuel-powered cars beyond 2035.

"We welcome the German government's support for revisions to the European regulations," Filosa said in a statement, adding it built on auto lobby ACEA's package of proposals, "all of which are urgently needed to return the European auto industry to growth".

German Chancellor Friedrich Merz last week urged Brussels to allow exemptions for plug-in hybrids and highly efficient combustion engines, arguing that automakers need more flexibility as they battle slow electric-vehicle uptake and fierce competition from China.

Since it ousted its former CEO Carlos Tavares a year ago, Stellantis - which was formed from the merger of Fiat Chrysler and PSA in 2021 - has become a vocal advocate for changes to the EU's auto regulation.

The automaker's Chairman John Elkann last week warned that the European car industry risked "irreversible decline" without softer rules, while Filosa said the sector needed "urgent and definitive action" to restore growth.

While such fears are widely shared by unions, industry proposals also include new goals for light commercial vehicle emissions, changes to regulation aimed at supporting production of small cars and measures to accelerate fleet renewal – all aimed at reconciling decarbonisation with jobs and affordability.

(Reporting by Giulio Piovaccari, Editing by Louise Heavens)