Stellantis changes course: Not only electric cars from 2035

At the table with the government, the group embraces the 'non-paper' against EU policies on battery vehicles: what happens now

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By: Riccardo Ciriaco

Published by: Brian Potter

Dec 21, 2024 at 3:28am ET

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Stellantis is changing its tune and expressing strong doubts about stopping the sale of petrol and diesel cars in Europe from 2035.

'Let's hope that the EU authority understands that you don't mess around now. We need a change of pace,' is the wish (and the invitation) of Jean-Philippe Imparato, European head of the group, who appears at the Ministry of Enterprise and Made in Italy (Mimit) to present the so-called Italy Plan to the government.

A change of pace

But a change of step is also being made by Stellantis itself, which until now, through the mouth of its now former CEO Carlos Tavares, had always declared itself in favour of banning combustion engines. "Global warming is a reality and it is our responsibility to do something for future generations. Rather than arguing about regulations, it is better to come to an agreement,' were the words of the then CEO during a hearing in Parliament in October.

The Stellantis plant in Atessa

The former CEO of Stellantis, Carlos Tavares

Then the situation changed. Tavares probably paid the price being "all-in" on the electric car, which is being blamed for the slump in sales, and Imparato took his place in talks with politicians, pending the appointment of a new CEO.

This led to Stellantis' re-entry into ACEA (an association that brings together European manufacturers and proposes a reappraisal of the discontinuation of combustion engines) and culminated in the Italy Plan and Imparato's statements.

A valuable ally

Working alongside Minister Adolfo Urso, the French manager (of Apulian origin) will lend a hand to the executive in the battle in Brussels against ‘all electric’ from 2035.

In fact, the manufacturer will move 'in line with what is outlined in the Italian government's 'non-paper',' the informal document that launches the idea of bringing forward from the end of 2026 to the beginning of 2025 the application of the phase-out review clause.

Stellantis table

The Stellantis Table at Mimit

Photos by: Mimit

Stellantis table

The handshake between Urso and Imparato

The aim is to allow the sale of not only electric but also combustion cars powered by e-fuel and biofuel, if they prove to be zero greenhouse gas emission fuels. This would save manufacturers the inevitable industrial overhaul and all that it entails.

The ministry's text, written together with the Czech Republic, would already boast "a broad convergence on the part of the various EU countries", while the European Commissioner for Sustainable Transport, Apostolos Tzitzikostas, would have given "full readiness to dialogue on the issue with governments and industrial partners".

Updates are expected on 21 January in Strasbourg, at the next plenary session of the European Parliament. Meanwhile, the non-paper will end up on the desk of President Ursula von der Leyen, who has promised to personally deal with the automotive sector in the first 100 days of this second term.

Ursula von der Leyen visits Rimac headquarters

President Ursula von der Leyen visiting Rimac headquarters

Node fines

But first there is the other knot to be untangled: cancelling the fines for manufacturers who do not reduce emissions from new registrations as early as 2025: a rule that would mean selling many more electric cars at a complicated time, with battery-powered vehicles losing market share.

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Imparato explains that the group would have to increase deliveries from the current 12 per cent to 21 per cent, under penalty of 'EUR 300 million' for every percentage point missed, which is potentially €2.7 billion. Too much for those who want to recover after a difficult 2024.

On paper remain the targets of the Dare Forward 2030 plan, which envisages the total electrification of all brands by the end of the decade. Will this really be the case?