European car industry risks 'irreversible decline', Stellantis chairman warns

Stellantis lauches production of new hybrid Fiat 500

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TURIN (Reuters) -Stellantis Chairman John Elkann on Tuesday warned that the European auto industry risks ​an "irreversible decline".

Speaking in Turin during an ‌event marking the start of large-scale production of the new hybrid version ‌of the Fiat 500 small car, Elkann said the industry as a whole had drawn up a package of proposals for the European Commission to give automakers more flexibility on emissions targets ⁠and that this would ‌allow the sector to avoid such decline.

The European Commission is due to present on December 10 ‍a package of proposals as part of its scheduled review of EU carbon emissions regulation for the auto industry.

Elkann earlier this month said Stellantis ​backed a string of measures put to the EU to ‌support the European auto industry.

Those proposals include allowing plug-in hybrids, range extenders and alternative fuels beyond 2035, averaging interim carbon reduction goals fixed for 2030 over several years, introducing a wide scrappage scheme on existing cars and adapting regulation ⁠to favour the production of small cars.

Gianluca ​Ficco of UILM union said in ​a statement that the start of production of the hybrid Fiat 500 was positive for Italian output but ‍added that the ⁠EU needs to change rules for the auto industry, "before it's too late" and to avoid ⁠tough consequences for the industry and jobs.

(Reporting by Giulio Piovaccari, ‌writing by Giulia Segreti and Giulio Piovaccari; editing by ‌Alvise Armellini and Keith Weir)