Tariffs from the United States and strict environmental standards from the European Union pose significant challenges for the global automotive industry. This opinion was expressed by the chairman of the board of directors of Stellantis, John Elkann, during the corporation’s annual shareholders’ meeting. According to him, the current conditions for the automotive industry are extremely difficult, and he urged the US and Europe to take urgent measures to ensure a smooth transition to new energy standards.
This is reported by Бізнес • Медіа
Impact of Tariffs and Environmental Standards on the Global Automotive Sector
Elkann stated that American automotive companies are facing additional tariffs, including duties on aluminum, steel, and parts, in addition to the standard 25% rate on imported vehicles. This complicates the market situation and raises car prices. Regarding Europe, he noted that emissions regulations and climate restrictions impose an “unrealistic path to electrification” that does not align with market realities.
“European governments sometimes abruptly cancel incentives for electric vehicle buyers, and the charging station infrastructure remains inadequate, which hinders the transition to electric vehicles,” Elkann emphasized.
In light of these challenges, Stellantis announced temporary layoffs at its plants in the US and the suspension of production at two facilities in Mexico and Canada following the announcement of widespread tariffs in the US under Donald Trump.
International Challenges for the Automotive Industry
Elkann stressed that the automotive industry is a source of jobs, innovation, and community development, and called for swift action to stabilize the situation and protect the sector from negative economic and regulatory factors.