Stellantis Chairman John Elkann warned on Tuesday that escalating tariffs in the United States and stringent emissions regulations in the European Union pose significant risks to the automotive sector, as the company continues its search for a new chief executive.
Speaking at the group’s annual shareholders’ meeting, Elkann said that current policy directions in major Western markets could jeopardize the competitiveness of local car manufacturers. “With the current path of painful tariffs and overly rigid regulations, the American and European car industries are being put at risk,” Elkann said.
See also: Stellantis Narrows CEO Search to Five Candidates Amidst Industry Challenges
Elkann described the present business environment as “extreme,” urging policymakers to adopt measures that would allow for a more orderly transition as the global automotive landscape evolves. He noted that car manufacturing remains a critical source of employment, innovation, and community development, and said losing that foundation would be “a tragedy.”
The chairman did not provide new updates on the appointment of a permanent CEO, but reiterated that Stellantis expects to name a successor in the first half of the year. Carlos Tavares, who led the automaker until his departure in December, left amid falling sales and deteriorating relations with suppliers and investors. Shareholders on Tuesday approved a €35 million ($40 million) compensation package for the former CEO.
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Sources told Reuters earlier that the company has narrowed its shortlist of CEO candidates to five, including two internal contenders — North America head Antonio Filosa and procurement chief Maxime Picat — as well as three external options.
Elkann also highlighted trade pressures in the United States, where auto imports face compounded tariffs on materials and components, including a baseline 25% rate. Nonetheless, he welcomed recent comments from former President Donald Trump, who suggested he may consider easing tariffs on auto imports from Mexico, Canada, and other nations.
See also: Stellantis Warns U.S. Dealers of Competitive Risks from New Tariffs
Turning to the European Union, Elkann criticized what he described as an “unrealistic path to electrification” driven by regulatory targets that he believes are misaligned with market conditions. He said the phase-out of government purchase incentives and underdeveloped charging infrastructure are hindering the industry’s shift to electric vehicles.
Stellantis, the world’s fourth-largest automaker by sales, was created through the 2021 merger of Fiat Chrysler and Peugeot maker PSA Group. Its portfolio includes brands such as Jeep, Ram, Alfa Romeo, and Citroën.
Source: Reuters
