Finance
European car industry risks 'irreversible decline', Stellantis chairman warns
Published by Global Banking and Finance Review
Posted on November 25, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 25, 2025
2 min readLast updated: January 20, 2026
Stellantis Chairman warns of a potential decline in the European auto industry unless the EU adjusts emissions targets. Proposals include support for hybrids and alternative fuels.
TURIN (Reuters) -Stellantis Chairman John Elkann on Tuesday warned that the European auto industry risks an "irreversible decline".
Speaking in Turin during an event marking the start of large-scale production of the new hybrid version of the Fiat 500 small car, 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 and that this would allow the sector to avoid such decline.
The European Commission is due to present on December 10 a package of proposals as part of its scheduled review of EU carbon emissions regulation for the auto industry.
Elkann earlier this month said Stellantis backed a string of measures put to the EU to support the European auto industry.
Those proposals include allowing plug-in hybrids, range extenders and alternative fuels beyond 2035, averaging interim carbon reduction goals fixed for 2030 over several years, introducing a wide scrappage scheme on existing cars and adapting regulation to favour the production of small cars.
Gianluca Ficco of UILM union said in a statement that the start of production of the hybrid Fiat 500 was positive for Italian output but added that the EU needs to change rules for the auto industry, "before it's too late" and to avoid tough consequences for the industry and jobs.
(Reporting by Giulio Piovaccari, writing by Giulia Segreti and Giulio Piovaccari; editing by Alvise Armellini and Keith Weir)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles.
A hybrid car is a vehicle that uses two or more types of power, typically combining an internal combustion engine with an electric motor to improve fuel efficiency.
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