"Unrealistic": Like BMW and Mercedes, the new boss of Stellantis criticizes the end of sales of thermal cars in 2035

After BMW and Mercedes-Benz, Stellantis: the new boss of the world's fourth largest car manufacturer, the Italian Antonio Filosa, has also questioned the ban on sales of thermal vehicles in 2035 in the European Union , an objective "not realistic" without the introduction of "flexibilities" for manufacturers affected by the crisis.

"The targets of reducing greenhouse gas emissions by 55% by 2030 and banning sales of combustion-engine cars by 2035 (in the European Union) are not realistic as defined," the new CEO of Stellantis said in an interview with Les Echos on Saturday, September 6.

"We need to introduce flexibilities that will contribute both to decarbonization and to maintaining industrial activity," added Carlos Tavares' successor at the head of the world's fourth-largest car manufacturer (Jeep, Peugeot and Fiat).

The ban on the sale of new petrol and diesel cars, including hybrids, in the EU from 2035, a symbol of the ambitious measures of the European Green Deal, was approved by the European Commission in March 2023 despite German reluctance.

A "review" clause has been set for 2026 to take stock of the situation and possibly make adjustments to the text. This objective has been contested for several months by some manufacturers, faced with stalling sales of electric models, increasing Chinese competition, US customs duties, and falling global profits.

"Relaxations" may be considered, but only on condition that they do not "call into question" the exit from fossil fuels, the French Ministry of Industry indicated in June.

German premium carmaker BMW proposed on Friday postponing the ban to 2050. The previous week, Ola Källenius, head of Mercedes-Benz and president of the European Automobile Manufacturers' Association (ACEA), had described the 2035 target as "unattainable."

Under pressure from industry, the European Commission already relaxed its medium-term CO2 emissions reduction targets in March, and its president, Ursula von der Leyen, is due to open a "strategic dialogue" with car manufacturers next week, shortly after the start of the Munich Motor Show (IAA), a key event for the sector.

"We must now move from strategic dialogue to strategic action. And quickly. We must not underestimate the rapid decline of the European automotive industry," added Antonio Filosa.

Asked about the questioning of the 2035 deadline, he reaffirmed the need for "flexibility levers" to "stop the vicious circle which leads to a decline in sales and delays the renewal of an aging vehicle fleet."

It proposes measures to "green the fleet, such as scrappage incentives or conversions for newer vehicles," "CO2 supercredits" for sales of small electric cars, and even better valuation of hybrid vehicles. These measures aim to "reinvigorate the market" to "reduce production costs" and "make cars more affordable."

As Jean-Philippe Imparato, who heads the European branch of Stellantis, did at the beginning of July, Antonio Filosa reaffirmed that "the most urgent decisions to be taken in Brussels concern the decarbonization trajectory of light commercial vehicles," a market "in pain" because demand from professionals is not there in the face of high costs.

This "puts tens of thousands of jobs at risk" and it is necessary to "extend CO2 emission reduction targets for this segment by three to five years," he believes.

While he points out that this route is strategic, particularly for France, "because one of our largest utility vehicle factories is in the North, in Hordain," he states, when asked about potential factory closures, that it is "impossible to make a statement at this stage; we must first see how discussions on European regulations evolve."

In a global automotive market that is "regionalizing" under the "double pressure of customs duties and regulations," Mr. Filosa continues, "Europe has chosen the path of complete electrification, a direction that we support and in which we have invested heavily, but whose pace and rigidity we are now questioning given the realities of the market."