Stellantis The CEO called on European regulators to create stronger incentives for automakers to build cars in the region as they face increasing competition from Chinese rivals who dominate the market.
Antonio Filosa, who will take the helm of the auto giant starting in 2025, spoke to “CNBC Conversation” on Monday ahead of the Paris Motor Show about the company’s declining sales amid China’s “remarkable” acceleration in the European market.
“What we’re very supportive of in Europe is establishing a level playing field for everyone,” Filosa said in an interview with CNBC’s Charlotte Reid.
“Specifically, that means committing to real regulation…regulation that encourages, rewards and protects companies that can design and demonstrate that they design cars from a ‘Made in Europe’ perspective,” Filosa added.
“Made in Europe” refers to legislation drafted by the European Commission that would require car manufacturers to meet minimum local content requirements in order to sell within the regional market.
The global automaker, known for major car brands such as Jeep and Ram, is in the midst of a $70 billion turnaround strategy as it struggles with declining demand. The company’s stock price has fallen about 60% since the beginning of the year.
Stellantis stock since the beginning of the year.
Chinese car brands are dominating the global market, with their global car sales share soaring by nearly 70% from 2020 to 2025, according to market research and consulting firm GlobalData. Meanwhile, Europe’s market share for car sales rose from close to zero in 2020 to 12% in August this year, according to data from Germany-based Dataforce.
“We believe that the Chinese automakers that we know can really offer great technology and competitive prices to many consumers in many segments,” Filosa said.
European Trade Commissioner Maroš Sefčović said on Friday that China had agreed to halve exports of hybrid cars to the region after the Chinese government repeatedly rejected the request.
European automakers rose on Monday morning on news of the deal. Stellantis rose 2.7%, French automaker renault It was up about 3%. french auto parts suppliers Valeo and Phorbia It also rose in early trading.
In response to the request, a spokesperson for China’s Ministry of Commerce said Monday that China and the European Union maintain dialogue on trade and investment and have reached “several agreements and achievements that help maintain a stable, balanced and important trade partnership,” according to a Chinese-to-English translation by CNBC.
One of the principles established as part of the agreement is “non-discrimination,” meaning that no measures will specifically target or discriminate against Chinese companies. “China’s import quotas will not be lower than the quotas of other importing countries to the EU.”
—CNBC’s Michael Wayland contributed to this report.
