Stellantis: Imparato's cash answers to French government questions

Jean-Philippe Imparato, Managing Director Europe of Stellantiswas interviewed by the Senate Committee of Inquiry into the use of public aid by large companies. Faced with a series of questions from the senators on the effectiveness and transparency of this aid, the Stellantis CEO gave a frank and detailed answer, giving a precise overview of the impact of public aid on the automotive industry in France, and on Stellantis in particular.

Public subsidies: an essential lever for the energy transition and competitiveness

Imparato began by recalling the importance of Stellantis in France, with its 12 plants and 42,000 employees. The group, born of the merger of PSA and Fiat Chrysler, is a major player in the automotive industry, not only in terms of production, but also in the field of energy transition. "France is an essential pillar of our business," he emphasized, pointing out that the group has invested more than 3 billion euros over the past five years to modernize its French plants, in particular to adapt them to the demands of electric and hybrid vehicle production.

Jean-Philippe Imparato highlighted the importance of public support in this process. "Without research tax credits, regional subsidies and reductions in social security contributions, it would be extremely difficult to finance this transition," he asserted. One of the key points of his speech was the precision of the aid received, with clear amounts earmarked for specific projects, such as the conversion of factories for the production of electric batteries and hybrid motors. According to him, "public aid must be targeted at concrete, measurable projects, and oriented towards innovation."

Aid efficiency: less but better

Imparato didn't mince his words about the use of public funds. For him, the current system of public aid in France lacks coherence and efficiency. "It is necessary to concentrate aid on high-impact projects, rather than multiplying schemes," he suggested, stressing the need for a more targeted approach. He pointed out that, since 2013, Stellantis has benefited from 14 different categories of aid, ranging from research tax credits to local grants, representing around 5% of the company's total investments. "If we want to be competitive, we need to have a simpler and more coherent approach to aid, which today is too scattered," he added.

Concerns about competitiveness persist

Another major topic addressed by Imparato was the competitiveness of the electric vehicle market. Ihe reported on the decline in purchase incentives, which has had a direct impact on electric vehicle sales. "Today, the electric market is collapsing. We have clear targets, but without purchase support, the transition to electric is compromised," he said, adding that each missing point in the electric mix cost him around 300 million euros. The lack of purchase support, he said, had exacerbated unfair competition from Chinese manufacturers, who sell their electric vehicles at much lower prices thanks to massive government subsidies.

Imparato also pointed out that, despite the public subsidies received, production costs in France are much higher than in other European countries, such as Spain and Italy. "Producing a car in France costs twice as much as in Spain and three times as much as in Italy. We have a major problem of competitiveness, not only due to wages, but also to the cost of energy," he denounced.

The bosses are the Americans and the Chinese

Jean-Philippe Imparato has also taken an outspoken stance on the current dominance of the United States and China in automotive technology. "The bosses today are the Americans and the Chinese. They're leading the way in terms of technologies, particularly in the energy transition," he declared. He pointed out that these countries, with their massive investments in the research and development of new technologies, notably electric vehicles and batteries, are taking a considerable lead over Europe. In his view, this situation is jeopardizing the competitiveness of European automakers, who are under considerable pressure to catch up.

Employee retraining

Imparato highlighted another fundamental issue for the future of Stellantis: retraining its employees. The group is investing heavily in training its employees in electric vehicle technologies, in order to preserve jobs while meeting technological challenges. "It's not easy to switch from a combustion engine to an electric battery. We have trained thousands of employees for this, and it's part of our transition strategy," explained Imparato.

Need for long-term vision

Jean-Philippe Imparato ended his hearing by calling for a coherent, long-term European industrial strategy, emphasizing that international competition is intensifying, and that Europe must prepare to meet these challenges. "We need better-directed public aid, stable purchasing incentives and more competitive energy policies to guarantee the long-term future of the automotive industry in Europe," he insisted, concluding that without collective, coordinated action, the European automotive industry could be on the verge of losing its independence in the face of the rise of Asian producers.