EU Eases 2035 Petrol Ban, But Stellantis CEO Says Plan Still 'Does Not Do the Job'

Stellantis (NYSE:STLA) pushed back sharply against the European Union's revised vehicle emissions plan, warning it undermines growth incentives.

The automaker said the updated framework lacks urgency and clarity for large-scale investment, the Financial Times reports.

Leadership Raises Alarm

Chief Executive Antonio Filosa said Brussels missed a chance to support expansion across Europe's auto sector.

Also Read: Benzinga Bulls And Bears: Carnival, Caterpillar, Meta — And Markets Make Modest Gains

Filosa assumed leadership in June and oversees brands including Jeep, Fiat, and Peugeot, the report adds.

He argued the proposal offers no immediate measures to revive demand or protect industrial competitiveness.

"This package does not do the job," Filosa said, criticizing the absence of a credible growth pathway.

Filosa warned that weak growth discourages capital deployment and threatens supply chain resilience.

Investment Plans On Hold

Last year, Filosa signaled stronger European investment if regulators softened the 2035 combustion engine ban. After reviewing the revised rules, he said the incentives remain insufficient.

He stressed that investment depends on predictable policies and near-term demand support.

Without those conditions, he said, automakers struggle to justify new factories or supplier commitments.

Policy Shift Sparks Division

The European Commission recently moved to revise the zero-emissions mandate for new vehicles.

Carmakers may continue selling limited combustion models while offsetting emissions through approved methods.

The plan allows residual emissions but requires offsets using green steel and renewable fuels. Filosa said those conditions raise costs beyond reach for mass-market manufacturers.

He also flagged limited relief for commercial vehicles and electric vans.

Industry Reactions Split

Renault Group welcomed the changes, calling them pragmatic and responsive to market realities.

Germany's auto lobby disagreed, warning the framework creates barriers to execution.

VDA President Hildegard Müller described the measures as unworkable for manufacturers, Financial Times adds.

Commission officials defended the approach, saying it preserves climate ambition. Industry Commissioner Stéphane Séjourné said the package supports transition without abandoning targets.

Officials argued offset rules could accelerate adoption of low-carbon industrial inputs.

Read More:

• Elon Musk's SpaceX Confirms Satellite Anomaly After Debris Detected In Orbit: ‘Will Reenter The Earth's Atmosphere And Fully Demise Within Weeks'