The European Union thought it was offering automakers a compromise. Instead, it got a corporate earful from Stellantis (STLA), which says Brussels' revised vehicle emissions plan still doesn't cut it.
CEO Antonio Filosa didn't mince words when assessing the EU's updated framework, which was supposed to soften the controversial 2035 combustion engine ban. According to the Financial Times, he warned the new rules lack the urgency and clarity needed to unlock large-scale investment across Europe's struggling auto sector.
No Growth, No Investment
Filosa, who took the helm in June and now oversees iconic brands like Jeep, Fiat, and Peugeot, said the European Commission missed a critical opportunity to support expansion. His main gripe? The proposal offers zero immediate measures to revive demand or shore up industrial competitiveness.
"This package does not do the job," Filosa said, pointing to the absence of any credible growth pathway.
The concern isn't just philosophical. Weak growth translates directly into capital hesitation, and that threatens everything from factory construction to supply chain stability. Without near-term demand support and predictable policies, automakers can't justify building new facilities or locking in long-term supplier agreements.
The Promise That Wasn't
Last year, Filosa hinted that Stellantis might ramp up European investment if regulators dialed back the 2035 ban. Now that he's seen the revised rules, his verdict is clear: the incentives still fall short.
The European Commission recently adjusted its zero-emissions mandate to allow carmakers to keep selling limited numbers of combustion vehicles, provided they offset emissions through approved methods. Sounds flexible, right? Not according to Filosa.
The problem lies in the details. The plan permits residual emissions but requires offsets using expensive inputs like green steel and renewable fuels. For mass-market manufacturers operating on thin margins, those costs are prohibitively high. Filosa also noted the framework provides minimal relief for commercial vehicles and electric vans, segments where flexibility matters most.
Industry Can't Agree Either
If you're looking for consensus, you won't find it here. Renault Group actually welcomed the changes, calling them pragmatic and responsive to market realities. Germany's powerful auto lobby took the opposite view.
VDA President Hildegard Müller described the measures as unworkable for manufacturers, warning the framework creates more barriers than it removes.
European Commission officials, naturally, defended their approach. Industry Commissioner Stéphane Séjourné insisted the package supports the transition without abandoning climate targets. Officials argued the offset rules could actually accelerate adoption of low-carbon industrial inputs, turning regulatory requirements into market drivers.
Whether that optimism translates into factory investment remains to be seen. For now, Stellantis isn't buying it, and Filosa's blunt assessment suggests the standoff between automakers and regulators is far from over.
