Stellantis President John Elkann has expressed his position that European automakers should not diversify their activities toward the defense sector. During his address to the Italian parliament, Elkann highlighted that, despite the United States and China managing to maintain robust sectors in both automotive and defense industries simultaneously, European manufacturers do not need to integrate these two industries.
Stellantis: John Elkann says Europe is behind China and the United States
“The European automotive sector is in a critical phase, having to face growing pressure from CO2 regulatory targets and the decline of its global competitiveness. This sector is a key example of a lack of planning, where a rigid climate policy has been imposed without creating the industrial conditions that would support it,” said Elkann. “At Stellantis, we continue to maintain that electrification is the most effective tool to achieve decarbonization. At the same time, to meet the 2035 climate objectives, it is necessary to use the full range of low and zero-emission technologies, both for new vehicles and for the existing fleet.”
The regulatory changes announced two weeks ago by the European Commission move in the direction of postponing the burdens, with a total of 16 billion euros at stake, to be borne by manufacturers who cannot meet short-term emissions targets. “These are short-sighted interventions that do not give the necessary certainty to the market,” said the President of Stellantis.
John Elkann emphasizes that in 20 years, the sector will mainly produce electric cars. “China and the United States are defining an industrial policy for automobiles, with regulations and resources oriented toward achieving their national interests. We hope that this can happen soon in Europe as well. Because in this business, defining a clear framework is fundamental for all actors: for manufacturers, unions, suppliers, dealers, and, above all, customers.”
“Many spoke in 2004 of Fiat as a doomed company, bankrupt or to be nationalized. Twenty years ago, we were fighting for survival. Today we are among the top manufacturers in the world. For this extraordinary development path, Italy and Italians deserve great credit, and our gratitude goes to the entire country. We are often asked what advantages Italy gets from Stellantis. If Stellantis did not exist today, we would not be here, because the Italian auto industry would have already disappeared long ago, like computing after Olivetti and chemicals after Montedison,” Elkann maintains.
On U.S. tariffs wanted by Donald Trump: “We are preparing for a world where the rules will change. The Trump administration’s decisions on tariffs will have an impact on what we produce in Italy and Europe and sell in the United States. Brazil has defined a policy of developing the domestic market with its own technologies, such as ethanol, and a strong industry linked to them. Perhaps the world is moving toward being more like Brazil than like Europe.”
“China and the USA have an important defense industry and an important auto industry. It’s not a choice between one or the other; the two countries show us that you can have both industries strong. We believe that the future of the auto industry is not the defense industry, but is tied to what Europe decides in terms of industrial policy, resources, and energy,” concluded the Stellantis‘ Chairman.