Stellantis CEO Antonio Filosa has issued a blunt warning that the European Union’s latest package of measures for the auto industry could undermine long-term investment in the region, deepening uncertainty for manufacturers already under pressure from weak demand, high costs, and intensifying global competition.
Speaking to the Financial Times in an interview published on Saturday, Filosa said the proposals unveiled by the European Commission earlier this week lack the urgency and coherence needed to revive growth in Europe’s automotive sector, which remains one of the bloc’s most strategically important industries.
“There are none of the urgent measures needed to return the European automotive sector to growth,” Filosa said. “Without growth, it becomes very difficult to think about investing more.”
The Commission’s plan, announced on Tuesday, includes a controversial shift on climate policy by effectively dropping the EU’s planned ban on the sale of new combustion-engine cars from 2035.
The move has exposed deep divisions within the industry and among policymakers. While some automakers and member states argue that easing the rule offers breathing space amid slowing electric vehicle adoption and infrastructure gaps, others fear it dilutes regulatory clarity and weakens Europe’s credibility in the global transition to cleaner transport.
For Stellantis, which operates 14 brands including Peugeot, Fiat, Opel, Citroën, Jeep, and Alfa Romeo, the concern goes beyond the fate of internal combustion engines. Filosa framed the issue as one of strategic certainty and industrial confidence, arguing that frequent policy shifts make it harder for companies to commit capital to European factories, suppliers, and innovation hubs.
He said that without sustained and predictable investment, Europe risks losing its ability to build a resilient automotive supply chain, something he linked directly to employment, competitiveness, and security.
“Without additional investments, it becomes very difficult to build the resilient supply chain that is vital for European jobs, European prosperity and European security,” Filosa told the FT.
In an official statement released after the Commission’s announcement, Stellantis said the proposals failed to tackle several structural challenges facing the sector. The company pointed to the absence of a clear and comprehensive roadmap for light commercial vehicles, a segment that underpins logistics, trades, and small businesses across the continent. It also criticized the lack of flexibility around the EU’s 2030 emissions targets for passenger cars, which it said do not adequately reflect market realities or consumer affordability concerns.
The criticism comes at a delicate moment for Europe’s car industry. Automakers are grappling with slowing vehicle sales, stubbornly high energy and labor costs, and fierce competition from Chinese electric vehicle manufacturers, many of which benefit from lower production costs and strong state backing. At the same time, European manufacturers are being asked to fund multiple transitions at once: electrification, software-driven vehicles, autonomous technologies, and ever-stricter environmental and safety standards.
Industry executives have repeatedly argued that regulation alone cannot drive the transition. They have called for stronger demand-side measures, including purchase incentives, accelerated deployment of charging infrastructure, and policies to lower the cost of energy and raw materials. Without such support, they warn, consumers will delay purchases and manufacturers will struggle to justify large-scale investments.
The contrast with other regions has become increasingly stark. In the United States, the Inflation Reduction Act has unlocked billions of dollars in subsidies and tax credits for electric vehicles, batteries, and clean manufacturing, attracting major investment from global automakers and suppliers. Filosa’s remarks echo a growing concern among European executives that capital could increasingly flow to markets offering clearer incentives and more stable policy frameworks.
While the Commission has argued that its revised approach aims to balance climate goals with industrial competitiveness, Stellantis’ response highlights fears that the package delivers neither decisively. Easing the 2035 combustion-engine deadline may reduce near-term pressure, but Filosa suggested that without a credible growth strategy, it risks prolonging uncertainty rather than resolving it.
As Brussels continues to refine its industrial and climate agenda, the warning from one of Europe’s largest automakers points to the stakes. For companies like Stellantis, the challenge is not only adapting to new technologies, but deciding whether Europe remains a place where long-term automotive investment makes economic and strategic sense.







