European Auto Sector at a Critical Turning Point, Says Stellantis Chairman

Stellantis Chairman John Elkann issued a stark warning on November 25, stating that the European automotive industry is at risk of entering an “irreversible decline” unless urgent policy adjustments are made. Speaking at an event in Turin, Italy, Elkann emphasized that Europe’s carmakers are under increasing pressure from strict environmental regulations, fierce global competition, and rapidly shifting market dynamics.

Elkann’s remarks highlight the growing concern among European automakers who fear losing ground to rivals in China, the United States, and other regions that are advancing aggressively in electric vehicles, battery technology, and future mobility solutions.

---

Industry Submits Proposals to European Commission

According to Elkann, the European auto sector has collectively prepared a detailed set of proposals aimed at the European Commission, urging policymakers to grant manufacturers more flexibility in meeting emissions targets. The goal, he said, is not to weaken climate ambitions but to create a realistic and competitive pathway for automakers transitioning to cleaner technologies.

The proposals focus on:

• Adjusting the pace of emissions regulations
• Providing flexibility in compliance mechanisms
• Supporting industry investment in electrification and innovation
• Preventing further loss of market share to foreign competitors

Elkann argued that greater regulatory flexibility would give Europe’s automotive sector the room it needs to innovate, invest, and stay competitive without being overwhelmed by regulatory burdens.

---

Growing Competition From Chinese and U.S. Automakers

European automakers are facing unprecedented competition. Chinese car manufacturers have rapidly expanded in global markets, offering competitively priced electric vehicles and dominating battery production. Meanwhile, U.S. companies continue to benefit from large-scale domestic incentives and strong tech sector partnerships.

Industry analysts warn that if Europe does not respond quickly with supportive policies, its automotive ecosystem — which includes millions of jobs, supply chains, and research hubs — could lose its historical leadership position.

---

Calls for Policy Action Across the EU

Elkann’s speech adds to the growing chorus of leaders from companies such as Volkswagen, Renault, and Mercedes-Benz, who have all expressed concerns about regulatory pressures and weakening competitiveness.

European policymakers are currently reviewing future emissions rules, including the Euro 7 standards and 2035 targets for the phaseout of petrol and diesel cars. Automakers argue that without adjustments, these rules could strain companies that are already investing heavily in EV technology and industrial restructuring.

---

Conclusion

John Elkann’s warning underscores a pivotal moment for Europe’s automotive sector. As global competition intensifies and the regulatory environment tightens, the industry is urging the European Commission to take decisive action. Without strategic policy adjustments, European carmakers fear the region could face long-term economic and technological decline.