Stellantis CEO Urges EU for Immediate CO2 Measures and Flexibility as Italian Revival Begins with New Models

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Stellantis Exec Outlines Future Strategy, Addresses Italy concerns

Turin, Italy – September 7, 2025 – Stellantis is charting a course to confront evolving European automotive regulations, leveraging partnerships and aggressive expansion into new technologies, according to recent comments from a high-ranking executive. The executive, speaking on condition of background, outlined a strategy focused on brand strength, innovation, and bolstering production capabilities.

Facing shifting market dynamics, with European car industry sales down three million units in recent years, Stellantis aims to maximize output from existing and planned projects. The current industry decline necessitates a “revision of regulations,” the executive saeid, suggesting a call for government support to stimulate growth.

A key area of focus is the Termoli plant in Italy, which risks being left behind in the wave of Gigafactory construction sweeping Europe. Stellantis is attempting to secure the plant’s future by assigning it the production of a new electrified dual-clutch transmission (EDCT) gearbox. This production, mirroring the successful implementation at Mirafiori, will supply components for electric vehicles globally. The executive emphasized that the Termoli commitment represents a meaningful investment in next-generation technology.

addressing concerns about the size of the Stellantis portfolio of 14 brands, senior leadership clarified that Maserati is not under consideration for sale. However, a strategic review is underway to define optimal product development and long-term strategy for the iconic brand.

The executive also addressed the recent partnership with Chinese automaker Leapmotor. Positioned as a response to the increasing influx of Chinese automotive companies into Europe, the collaboration is seen as a strategic move to leverage Chinese technological advancements – particularly in areas like ADAS (Advanced Driver-Assistance Systems), smart cockpits, and central computing – while capitalizing on stellantis’ established design and brand recognition.

“If there is one thing that remains our competitive advantage, it is the iconicity of our brands and our ability to create compelling, desirable designs,” the executive stated. The Leapmotor partnership is anticipated to deliver synergies and streamline supply chain operations.

The executive acknowledged the legacy of former Stellantis CEO Sergio Marchionne, calling him an influential mentor. Many of Stellantis’ current leaders, including Luca De Meo and Antonio Baravalle, benefited from Marchionne’s guidance. The executive emphasized a commitment to continuing Marchionne’s innovative and results-oriented approach.

Stellantis is focused on navigating a rapidly changing landscape, balancing the need for cost-efficiency with investment in future technologies and the preservation of its core brand identity.

what are the key arguments Carlos Tavares is making regarding current EU CO2 regulations?

Stellantis CEO Urges EU for Immediate CO2 Measures and Versatility as Italian Revival Begins with New Models

The Push for Revised CO2 Regulations

Stellantis CEO, Carlos Tavares, has publicly called on the European Union to implement immediate and flexible CO2 emission regulations, citing the need to balance ambitious environmental goals with the realities of the automotive industry’s transition to electric vehicles (EVs). This plea comes as Stellantis accelerates its Italian manufacturing revival, underpinned by the launch of several new models designed to cater to evolving consumer preferences and stricter emission standards. The core argument revolves around the pace of EV adoption and the infrastructure required to support it.

Tavares emphasized that a rigid, one-size-fits-all approach to CO2 reduction targets could stifle innovation and hinder the industry’s ability to invest in crucial technologies. He specifically highlighted the importance of considering the entire lifecycle emissions of vehicles, including manufacturing and battery production, not just tailpipe emissions. This holistic view is gaining traction within the automotive sector, with many manufacturers advocating for a “well-to-wheel” assessment.

Italy’s Automotive Renaissance: A Strategic focus

Stellantis is heavily investing in its Italian operations, viewing the country as a key pillar in its long-term strategy. This commitment is evidenced by the recent unveiling of new models and the modernization of existing production facilities. The revival isn’t solely focused on EVs; it encompasses a broader range of powertrain options,including hybrid and efficient internal combustion engines (ICE),recognizing the diverse needs of the European market.

Here’s a breakdown of key initiatives:

New Model Launches: Several new Fiat, Alfa Romeo, and Maserati models are slated for release in the coming years, many incorporating advanced hybrid technologies.

Plant Upgrades: Meaningful investments are being made to upgrade plants in Melfi, Pomigliano d’Arco, and Atessa, transforming them into centers of excellence for EV and component production.

Supply Chain Localization: Stellantis is actively working to localize its supply chain in Italy, reducing reliance on external sources and boosting the local economy.

Skills Progress: Training programs are being implemented to equip the Italian workforce with the skills needed to manufacture and maintain EVs.

The CO2 Debate: Key Concerns and Proposed Solutions

The current EU CO2 regulations, outlined in the ‘Fit for 55’ package, aim to reduce greenhouse gas emissions by 55% by 2030. While Stellantis supports the overall objective,Tavares argues that the current trajectory is unrealistic without significant adjustments.

Key concerns include:

charging Infrastructure Deficit: The lack of widespread and reliable charging infrastructure across Europe remains a major obstacle to EV adoption.

Battery Raw Material Availability: Securing a stable and sustainable supply of raw materials for battery production is a critical challenge.

Affordability of EVs: The higher upfront cost of EVs compared to ICE vehicles continues to be a barrier for many consumers.

Grid Capacity: The existing electricity grid may struggle to cope with the increased demand from a fully electrified vehicle fleet.

Tavares proposes a more flexible approach that incorporates:

1. Incentives for Sustainable Biofuels: Recognizing the potential of biofuels to reduce lifecycle emissions.
2. Recognition of Hybrid Technology: Acknowledging the role of hybrid vehicles as a bridge to full electrification.
3. Investment in Charging Infrastructure: Accelerated deployment of public and private charging points.
4. Support for Battery Recycling: Developing robust battery recycling infrastructure to minimize environmental impact.

Impact on Stellantis’ EV Strategy

Stellantis has committed to achieving 100% electric vehicle sales in Europe by 2030. However, the CEO’s call for flexibility suggests a willingness to adapt the strategy based on market conditions and regulatory changes. The company is actively pursuing partnerships to secure battery supply and is investing heavily in its own battery manufacturing capabilities through the Automotive Cells company (ACC) joint venture.

the Italian revival is intrinsically linked to this EV strategy. The modernized plants will serve as key production hubs for electric vehicles and components, contributing significantly to Stellantis’ overall electrification goals. The focus on hybrid technology within the Italian lineup also demonstrates a pragmatic approach, catering to consumers who may not be ready to fully embrace EVs.

Real-World Example: The Fiat 500e Success Story

The Fiat 500e serves as a compelling case study.Its popularity demonstrates the demand for affordable,stylish EVs,especially in urban environments. However, Tavares has also pointed out that the profitability of the 500e is currently lower than that of its ICE predecessor, highlighting the challenges of achieving cost parity with EVs.This underscores the need for supportive policies and incentives to accelerate EV adoption without compromising the financial viability of automakers.

addressing Recent Concerns: “Ghost Braking” Investigations

While focusing on future strategies,