Paris remains a focal point for the global automotive industry this week as the Mondial de l’Automobile gathers chief executives, industry leaders, and policy makers in the French capital. Among the notable voices is the chief executive of Stellantis, who used the platform to outline a series of developments and concerns for lawmakers at the European level. The company’s headquarters and its production footprint—particularly the Vigo plant in Spain, a central hub for output—are at the heart of a broader debate about how European policy choices affect capacity, competitiveness, and the path to electrification. The executive urged caution about imposing electric vehicle mandates that might outpace market demand and warned that overly aggressive restrictions on vehicle use could shrink the European automotive market and reduce the need for factory capacity.
During the Paris show, the Stellantis leader gave interviews to multiple European outlets, including mainstream newspapers and regional publications. The message, conveyed with both data and caution, focused on the balance between policy goals and practical factory activity. A simple numerical explanation accompanied the warnings: European annual production in the past reached roughly 18 million units, with the post-pandemic landscape sitting closer to 15 million. If the gap of about three million vehicles in demand is distributed across production levels of roughly 250,000 units per plant, the resulting calculation implied a need for a reconfiguration of the European manufacturing network to align with current demand realities. While the figures are approximate, they framed a broader conversation about how many factories Europe truly requires to sustain future mobility needs.
In underscoring the wider regional impact, the executive noted that the contemplated adjustments could unfold across more than a dozen plants in Europe, including sites in Spain (Vigo, as well as Madrid and Zaragoza), and across other countries such as Portugal, France, Italy, Germany, the United Kingdom, Poland, Slovakia, and Serbia. He stipulated, however, that no French factories were being considered for closure in the near to mid-term, a point made before a high-profile visit by the French president. The overarching message emphasized that the shift toward electrification carries a high price tag, including investments in new technologies and production processes, even as overall enrollments for electric vehicles have fluctuated and the market has faced economic headwinds.
Central to the critique is the push for a more aggressive approach to combustion engines in favor of electric propulsion as policy instruments evolve. The executive pointed to the emerging 2035 deadline for phasing out internal combustion engines, alongside new emissions standards that would tighten the requirements for diesel and gasoline vehicles. The proposed Euro 7 regulation, he argued, could divert resources without delivering commensurate environmental gains, and he suggested that canceling or revising the standard might be worth consideration if the goal is to maintain a sustainable and balanced European fleet. The discussion touched on the tension between aggressive regulatory timelines and the practical realities of vehicle pricing, supply chains, and consumer adoption.
Competition and Price Dynamics in Electric Mobility
In comments given to another major outlet, the executive warned that the price gap between electric and traditional internal combustion engine vehicles is likely to narrow around 2026, driven by falling battery costs and rising production efficiency. He noted that raw material prices heavily influence electric vehicle pricing, and as volumes grow, manufacturers expect productivity gains that will eventually translate into more competitive prices for consumers. Yet he emphasized that the overall cost landscape for vehicles will remain variable, reflecting shifts in supply chains, financing, and material markets. The evolving economics of EVs, he suggested, will shape consumer choices and brand strategies in the coming years.
On the international stage, the CEO pointed out that the European market has opened its doors to Chinese automakers, while at the same time Western brands face new barriers from a shifting trade environment. The message was clear: market access and reciprocal policies matter as automakers navigate a landscape with differing tariffs, regulatory expectations, and competitive dynamics. The discussion extended to Stellantis’ announcements of new models for a flagship French production site, illustrating the company’s ongoing commitment to regional manufacturing capabilities even as policy conversations press for faster electrification and more stringent emissions controls.
Attached to these strategic dialogues is a call for a more balanced approach to tariffs and competition. The executive argued that reciprocal tariff arrangements would support a level playing field, particularly as the company confronts a globalized supply chain and intense competition from Chinese brands. In the analysis presented to audiences across Europe, he highlighted the relative tariff disparities that place European manufacturers at a disadvantage compared with their Asian counterparts, underscoring the broader policy implications for industrial strategy in the region.
Throughout Paris, the conversations reveal a common thread: the industry seeks policies that align ambition with practical capacity. The stance on electrification, economic viability, and competitive fairness reflects a broader strategy for Stellantis to remain a global leader in mobility while working within a European policy framework that is constantly evolving. The discussion points to a future where production decisions balance demand signals, regulatory requirements, and the need to sustain a robust, technologically advanced manufacturing network across multiple European nations.