Stellantis warns this issue could destroy the European auto industry

Core Insights - U.S. automakers are adapting to tariff burdens while benefiting from regulatory changes under the Trump administration, which have eased restrictions on emissions and fuel economy standards [1][2][3] - The elimination of penalties related to Corporate Average Fuel Economy (CAFE) rules has provided significant financial relief to automakers, particularly General Motors and Stellantis, who previously faced substantial fines [3][4][7] Regulatory Changes - The One Big Beautiful Bill Act has dismantled many Biden-era climate policies, benefiting original equipment manufacturers (OEMs) [1] - The Biden administration's emissions standards were deemed to exceed authority, leading to a reevaluation of expected electric vehicle adoption [2] Financial Implications - General Motors faced a $145.8 million penalty and forfeited $300 million in emission credits due to compliance issues, with total costs related to emission compliance reaching approximately $450 million through 2023 [5][7] - Stellantis incurred $191 million in civil penalties for failing to meet fuel economy requirements for 2019 and 2020, in addition to nearly $400 million in fines from 2016 to 2019 [7] Market Performance - U.S. market share for automakers stands at 17%, with electric vehicle sales reaching 67,000 units and an EV market share of 16.5% [8] - Dealer inventory has decreased by 16% year over year, while EV inventory has dropped by 30% since June [8] Industry Advocacy - Stellantis has supported proposals to eliminate CAFE penalties and is actively petitioning for lower emissions standards in the European Union, warning of potential industry decline if changes are not made [9][10]