The size and shape of any future investments in Europe by Stellantis will depend heavily on upcoming decisions on European Union automotive regulation, the carmaker’s head of the region said on Friday, warning that current policy signals lack clarity and alignment with market realities.
The comments come after the European Commission last month proposed easing its plan to ban the sale of new combustion-engine cars from 2035, following pressure from the auto industry. The move marked one of the EU’s most significant retreats from its green transport policies in recent years, but Stellantis has said the revised package does not go far enough to support manufacturers’ investment plans.
See also: Stellantis Warns EU Auto Policy Risks Undermining Investment, FT Reports
“The decisions of the European Union will have a big impact on visibility, on what are the dominant technologies that are needed,” said Emanuele Cappellano, Stellantis’ head of Europe, speaking at the Brussels Motor Show in his first press conference since taking the role in October.
Stellantis has previously said the Commission’s proposals fall short of what is needed to secure long-term industrial investment in the region. Chief executive Antonio Filosa has warned that the current policy direction could put future manufacturing and technology spending in Europe at risk.
See also: Stellantis Secures Patent For Foam-Based EV Battery Fire Suppression System
Cappellano said there was a growing “misalignment” between EU regulation, automakers’ capabilities and customer demand.
“We need to be very, very honest on this. So far, what has been announced failed completely in this extent,” he said, adding that both carmakers and consumers were looking for near-term solutions rather than long-term targets alone.
“The problem is not 10 years from now. It is today and customers that need some different stuff,” Cappellano said.
He noted that the European car market remains structurally weaker than before the COVID-19 pandemic, with sales down by around three million vehicles, making Europe the only major global region that has not yet returned to pre-pandemic levels.
See also: Stellantis Backs Germany’s Push to Ease EU Car Emissions Rules as 2035 ICE Ban Faces Review
Cappellano also said the EU should take stronger steps to protect the European automotive industry and help close competitive gaps with Chinese manufacturers, particularly in strategic areas such as batteries and semiconductors.
Asked about the future of Stellantis’ portfolio of 14 brands, which some analysts say is overly complex and leads to internal overlap, Cappellano said decisions would be addressed in the group’s upcoming business plan.
“We are going to work on a strategic plan … but my first priority is to guarantee that brand CEOs have the possibility to reinforce their brand attributes,” he said. Filosa is expected to present the new plan in the second quarter.
Source: Reuters