Stellantis Chief Calls for European Manufacturing Incentives Amid Chinese EV Surge

Antonio Filosa, CEO of Stellantis, has called on European regulators to introduce stronger incentives for automakers that manufacture vehicles within the region. Speaking ahead of the Paris Motor Show on Monday, Filosa emphasized the need for a level playing field as Chinese competitors continue to accelerate their dominance in the European market.

In an interview with CNBC’s Charlotte Reed, Filosa argued for regulations that reward companies capable of designing and engineering cars locally. He highlighted the concept of “Made in Europe,” referencing proposed EU Commission legislation that would mandate minimum local content requirements for vehicles sold in the bloc.

The appeal for regulatory protection comes as Stellantis navigates a challenging period. The company, which owns prominent brands such as Jeep and Ram, is executing a $70 billion turnaround strategy amid falling demand. Its stock has plummeted nearly 60% year-to-date.

Meanwhile, Chinese automakers are gaining significant ground globally. According to GlobalData, Chinese brands accounted for nearly 70% of the global auto sales share growth between 2020 and 2025. In Europe specifically, Dataforce reports that the market share for Chinese car sales surged from near zero in 2020 to 12% by August of this year.

Filosa acknowledged the competitiveness of the opposition, stating, “I believe that Chinese automakers… can really offer many consumers in many segments good technology and competitive prices.”

Recent diplomatic developments may offer some relief to European manufacturers. European trade commissioner Maroš Sefčovič announced on Friday that China has agreed to reduce its exports of hybrid vehicles to the EU by half. Following the news, Stellantis shares rose 2.7%, while French rivals Renault gained approximately 3%. Suppliers Valeo and Forvia also saw their stocks climb in early trading.

China’s Ministry of Commerce responded by noting that the EU and China have reached “several consensuses” conducive to a stable trade partnership. A key principle of the agreement is non-discrimination, ensuring that Chinese quotas will not fall below those assigned to other import sources.