Elkann To EU: Rethink 2035 Engine Ban Before It’s Too Late

Stellantis Chairman John Elkann is raising a red flag over Europe’s aggressive green-car regulations, warning that the European Union (EU) is steering directly toward an industrial downturn unless it revises its 2035 ban on new internal combustion engine (ICE) vehicles. In a wide-ranging interview with POLITICO, Elkann made it clear that Brussels’ current course could weaken Europe’s auto sector at the very moment global competition is ramping up.

For the head of one of the world’s largest automakers—and heir to the influential Agnelli family—this isn’t just a regulatory disagreement. It’s a wake-up call.

“It’s a tipping point. We have this moment where growth can be a choice… or we accelerate the decline,” Elkann told POLITICO.

His message, aimed squarely at EU leaders ahead of the December 10 automotive policy package, reflects growing anxiety inside European boardrooms as the region struggles with slow car sales, rising pressure from Chinese EV makers, and a shifting global trade landscape.

A Troubled Market Meets Tough Rules – 

Europe’s auto market still hasn’t recovered to pre-pandemic sales levels. Meanwhile, Chinese electric vehicle (EV) manufacturers continue to gain ground in Europe with aggressively priced, tech-heavy models. On top of that, U.S. President Donald Trump’s trade war has dramatically raised tariffs on European-built cars entering the American market—from 2.5% to 15%—further straining automaker balance sheets.

While Europe has tightened regulations, Stellantis has gone in the opposite direction in the U.S., announcing a massive $13 billion USD (€11.8 billion) investment overhaul for American manufacturing, thanks to more flexible regulations and a wider powertrain strategy.

Stellantis CEO Antonio Filosa summed up the company’s position earlier this month, saying the U.S. market is seeing “big growth… driven by the fact that the current administration changed regulation and gave back to Americans the freedom of choice.”

Europe, Elkann argues, is doing the opposite—limiting consumer choice instead of expanding it.

Elkann Wants “Technological Neutrality” –

The centerpiece of Elkann’s argument is simple: the EU’s 2035 ban shouldn’t be an EV-only solution.

Stellantis—along with many European automakers—wants the legislation rewritten to support technological neutrality, allowing multiple pathways to reach zero emissions. That would mean opening the door to:

• Plug-In Hybrids (PHEVs) with long electric ranges

• Range-Extender Electric Vehicle (REEV) setups using compact combustion engines

• Cleaner alternative fuels such as e-fuels or biofuels

• Advanced combustion engines running net-zero fuels

Elkann argues these options would help lower emissions faster without forcing consumers into a single technology before the market is ready.

The EU Commission is already working on reforms to the 2035 law, but it’s unclear how far they’ll go. France and Spain have offered a compromise—greater flexibility, but only if automakers meet new local-content requirements. Elkann supports exploring local-content rules but said the specifics need to be hammered out for the December 10 announcement.

Rethinking the Road to 2035 – 

Beyond the final 2035 goal, Elkann also wants looser interim emissions targets. Automakers currently face steep reductions on their way to the deadline, with fines looming for those who fall short. Elkann wants the EU to allow companies to average emissions over a longer period—five years, from 2028 to 2032—rather than locking them into a rigid 2030 milestone.

Averaging, he argues, would stabilize planning and ease the financial strain.

The EU has already allowed one round of averaging for 2025–2027 targets, reducing penalties. Stellantis wants that logic applied again.

The Big Ask: A Europe-Wide Scrappage Program –

For Elkann, the real game-changer is something much simpler: get older, dirtier cars off the road.

Millions of Europe’s vehicles are well over a decade old. Replacing them with newer, cleaner models—ICE, hybrid, or EV—could cut emissions immediately while boosting auto sales.

He told POLITICO the sector should even receive credit toward emissions targets for helping remove high-polluting vehicles.

According to Elkann, it’s the fastest path to real-world CO₂ cuts without crippling automakers or forcing consumers into vehicles they can’t yet afford. And unlike the long transition to full electrification, scrappage incentives would put money into dealerships today.

The Stakes for Europe –

Stellantis is doing well financially, which makes Elkann’s warning even more striking. The company recently posted €37.2 billion ($40.9 billion USD) in Q3 revenue—up 13% year-over-year—and approved a €2 billion ($2.2 billion USD) dividend in April.

Despite those strong numbers, Elkann insists Europe risks falling behind global rivals if it sticks to a strict EV-only path.

He told POLITICO: “If that’s not addressed, the e-car anyway will be wishful thinking.”

With 13 million European jobs connected to the auto sector, the December 10 policy package isn’t just another regulatory tweak—it could determine whether Europe remains a global automotive powerhouse or continues losing ground to the U.S. and China.

My Thoughts – 

As someone who has closely followed Stellantis and the broader Mopar ecosystem, Elkann’s warning feels less like political posturing and more like strategic triage. Europe’s auto industry is still world-class, but the path forward needs flexibility, consumer choice, and realistic timelines—not wishful thinking.

December 10 will reveal whether Brussels agrees.