Elkann is focusing on ways to bolster Italian car production after a dramatic slump in local output last year. (Giuliano Berti/Bloomberg News)
Stellantis NV Chairman John Elkann says Europe’s auto manufacturers don’t need the defense industry to survive, after some governments called on carmakers to contribute to a defense push.
“China and the U.S. have an important war industry and an important auto industry,” Elkann said during a parliamentary hearing in Rome on March 19. “We don’t believe it’s a choice between the war industry or the auto industry — it’s possible to have two industries as strong as the ones they have.”
Elkann, who is running Stellantis on an interim basis following the ouster of former CEO Carlos Tavares, is focusing on ways to bolster Italian car production after a dramatic slump in local output last year due to lower electric-vehicle demand, wrong price decisions and gaps in the product lineup.
Meanwhile, European countries such as Germany are increasing defense spending, prompting several suppliers to consider opportunities with the military. Auto-parts maker Schaeffler AG is looking for defense industry partners to expand sales. Volkswagen AG, Europe’s biggest carmaker, is also eyeing a defense role.
Elkann is under pressure to find a new CEO who can turn around the struggling automaker. Stellantis faces tariff risks in the U.S., where its Jeep, Chrysler, Ram and Dodge brands aren’t selling as well as expected. The group’s high-end Italian brands Maserati and Alfa Romeo have also lost ground to competitors and are in need of a turnaround.
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The audition in parliament marked a key moment in Elkann’s efforts to rebuild ties with Prime Minister Giorgia Meloni’s government after relations soured under Tavares. The former CEO moved production and engineering jobs to lower cost countries, and pushed suppliers to invest in nations such as Morocco, which sparked the anger of Italian politicians and labor unions.
Elkann reaffirmed a pledge to invest €2 billion ($2.2 billion) in Italy this year and a commitment to have €6 billion in orders from its suppliers in the country. Car production in Italy is likely to increase again in 2026 after a “difficult” 2025, but output levels will also depend on tariffs, he said.
