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.
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"We have a major competitiveness problem, not only due to wages..."
He acknowledges that he is paid far too much, which is a good start. Now it's time to take action and lower his salary.
"Producing a car in France costs twice as much as in Spain and three times as much as in Italy." No doubt that's why Italian workers are laid off and offered jobs in Serbia...
Then you have to be lucid, and what he says on this subject is extremely worrying given his position in the organization chart. "Today, the electric vehicle market is collapsing. So worldwide I don't know (in China I'd be surprised) but in Europe the electric market is growing by 28% when we compare February 2024 and February 2025. In other words, it now represents 15% of the total market. Maybe things aren't going so well for PSA, because the models aren't at all up to scratch with the competition, in terms of battery capacity for compact models, price and software. A Skoda Elroq starts at 33,300 euros, with a larger battery than the 308, recharging in 24 minutes, much more advanced software and offering much more space on board, more power, rear-wheel drive, true 360° vision and a 9.30m turning radius. I'll pass over the cancellation of the Alfetta program like Giulietta at Alfa, because at the top they've again cut spending and cancelled a platform (STLA Medium)... You can't refuse to invest and then be surprised to be late.
The Piscou gang is like the Macron gang: never their fault!
It's especially odd that he should say that it's cheaper to produce in Italy, when his ex-boss said he wasn't going to invest there because it's far too expensive compared to the cost of energy... Now energy is too expensive in France? With nuclear power? Is it really?
In Italy they say it's too expensive, in France the same, in Spain I imagine they'll say the same... In short, they're going to outsource everything to India, given the success of the C3's software development...?