On Tuesday, John Elkann, the Chairman of automaker Stellantis (STLA), warned that Europe’s car industry could face an “irreversible decline.” He spoke at an event in Turin celebrating the start of full-scale production of the new hybrid Fiat 500. Elkann explained that the auto industry had sent a set of proposals to the European Commission to ask for more flexible emissions rules. He believes that these changes could help prevent the industry from falling behind.
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The European Commission is expected to release a new set of proposals on December 10, as part of its review of emissions laws for carmakers. Earlier this month, Elkann confirmed that Stellantis supports the ideas sent to the EU, which aim to protect the competitiveness of Europe’s auto sector. The goal is to give carmakers more time and options to meet strict environmental standards without harming production or jobs.
Some of the proposals include letting technologies like plug-in hybrids, range extenders, and alternative fuels stay on the market beyond 2035. They also suggest spreading out the 2030 carbon reduction goals over a few years to create a program to replace older cars, and adjusting rules to better support small car production. Gianluca Ficco from the UILM union welcomed the launch of the hybrid Fiat 500, but said that the EU needs to update its rules soon to avoid major job losses and damage to the car industry.
Is STLA Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on STLA stock based on five Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average STLA price target of $10.80 per share implies 3.1% upside potential.
