Wednesday, May 20, 2026

Auto giant Volkswagen-Stelantis appeals to EU to save the industry

In an appeal to the European Union, both the companies have suggested that a carbon dioxide bonus be arranged for vehicles manufactured in Europe. According to media reports, the companies believe that this will promote local manufacturing, protect jobs and make it easier to achieve climate goals.

Warning about geopolitical competition

Stellantis CEO Antonio Filosa and Volkswagen CEO Oliver Blume jointly warned that Europe has entered a new geopolitical era. They say that now more than ever, trade, technology and industrial capabilities are being used to serve national interests. And in such a situation the European Union will soon have to choose its path.

Growing debate on ‘EU preference’ rules

The debate on ‘EU preference’ rules regarding electric vehicles has also intensified. Some countries like France want that “Made in Europe” should be given priority for electric cars. However, due to differences within the European Commission, the decision on this has been postponed for at least a month.

Stellantis’ objection to the cost of electrification

Stellantis, the parent company of Fiat and Peugeot, has criticized some of the changes proposed by the European Commission. The company says that the transition to electric mobility is still placing huge cost pressure on car manufacturers, which cannot be ignored.

Battery manufacturing dilemma

The heads of Volkswagen and Stellantis said the problems associated with EV battery cell manufacturing in Europe clearly reflect the EU’s dilemma. On the one hand, local production is necessary for technological self-reliance. On the other hand, customers expect affordable electric cars. Pressure to keep prices low increases reliance on cheap imported batteries.

Battery Joint Ventures Review

Antonio Filosa is currently reviewing Stellantis’ global operations. According to sources, the company may also consider downsizing or closing some battery joint ventures. This review is being done at a time when there is a slowdown in the demand for battery-electric vehicles.
Conclusion: The challenge of balancing conservation and competition

The appeal of Volkswagen and Stellantis shows that Europe’s auto industry is now seeking a balance between policy support, cost control and global competition. The upcoming decisions will determine how Europe strengthens its position in this changing automotive landscape.

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