Stellantis seeks clearer EU rules to anchor production

Stellantis and Europe's two other largest carmakers have sent a joint letter to European Parliament members urging the EU to establish clearer rules for what qualifies as a European-made vehicle and to introduce stronger incentives to keep production within the bloc. According to Reuters, the three groups—which together account for roughly 60 per cent of Europe's car output—are seeking rules that would simplify compliance and reduce the risk of production shifting eastward or overseas.

The push comes as Stellantis, headquartered in the Netherlands but with substantial operations in Turin and across northern Italy, faces mounting pressure on multiple fronts: quality issues that Automotive News reported persist despite management efforts, and competition from cheaper Chinese electric vehicles entering European markets. The carmaker has also begun testing solid-state battery technology in development vehicles, a technology that could anchor advanced manufacturing in Europe if production costs become competitive.