Stellantis Chief Executive Antonio Filosa on Monday welcomed Germany’s call to soften European Union car emissions rules, saying Berlin’s proposals align with industry demands to revive growth in a sector struggling with weak demand, slow electric vehicle (EV) adoption and intensifying competition from China.
The European Commission is due to unveil a broad automotive support package on Dec. 10, which is expected to include a review of carbon-emission targets and the bloc’s planned 2035 phaseout of new internal combustion engine (ICE) vehicles. Governments and manufacturers across Europe have been urging Brussels to adopt a more flexible approach that could allow continued sales of plug-in hybrids and new fuel-powered vehicles beyond 2035 under certain conditions.
“We welcome the German government’s support for revisions to the European regulations,” Filosa said in a statement, adding that the proposals build on recommendations from the European auto lobby ACEA, “all of which are urgently needed to return the European auto industry to growth.”
German Chancellor Friedrich Merz last week urged the European Commission to allow exemptions for plug-in hybrids and highly efficient combustion engines, arguing that automakers require greater regulatory flexibility as they battle slow EV uptake, high production costs and fierce price competition from Chinese rivals.
See also: France and Spain Reaffirm Support for EU’s 2035 Zero-Emission Car Target
At the EU level, Transport Commissioner Apostolos Tzitzikostas has also signalled potential changes. In an interview with Germany’s Handelsblatt, he said the European Union could allow new combustion-engine vehicles beyond 2035 under revised climate rules, provided they run exclusively on low- or zero-emission fuels, including advanced biofuels and e-fuels.
Germany’s coalition government has since agreed on a unified national position for the EU review of the 2035 zero-emission requirement, backing a broader range of technologies that would include highly efficient combustion engines alongside battery-electric vehicles, party sources said after a coalition committee meeting.
See also: Germany Approves Charging Infrastructure Master Plan 2030 to Accelerate EV Rollout
Since the departure of former chief executive Carlos Tavares a year ago, Stellantis — formed from the 2021 merger of Fiat Chrysler and PSA — has taken a more outspoken position on European regulation. Stellantis Chairman John Elkann warned last week that Europe’s car industry risks an “irreversible decline” without softer rules, while Filosa said the sector needs “urgent and definitive action” to restore sustainable growth.
European automakers have said the transition to EVs is progressing more slowly than anticipated when targets were set earlier in the decade, citing weak consumer demand, high energy prices, trade frictions with the United States and intensifying competition from Chinese manufacturers. Industry proposals now also include revised emissions goals for light commercial vehicles, regulatory support for small and affordable cars, and incentives to accelerate fleet renewal — measures aimed at reconciling decarbonisation with jobs, affordability and industrial competitiveness.
Source: Reuters