Stellantis will not increase defense industry production as Europe scales up military capabilities, reacting to the loss of faith in U.S. support in any conflict with Russia.

That’s the message delivered by its chairman John Elkann during an address to Italian politicians looking to get a greater commitment from the automaker to boost vehicle production in the nation.

Elkann tells the Italian parliament that both the U.S. and China maintain strong defense and automotive industries at the same time, so there should not be a choice made between the two. He says: “We don't think the future of the car is the defense industry.”

Italy’s ruling right-wing coalition, led by Prime Minister Giorgia Meloni's The League party, has long attacked the automaker’s industrial strategy that made extensive use of foreign vehicle production and investments where labor and production costs are lower than in Italy, as well as its focus on electric vehicles.

Former CEO Carlos Tavares drove that strategy but was ousted last December after extremely poor financial results in 2024.

Stellantis last year manufactured less than 500,000 vehicles in Italy, down from 751,000 in 2023, its lowest since 1956.

Elkann assures lawmakers: “We prepared for today's hearing with great attention because, for us, Italy plays a central role. We are, and I personally am, very proud of this long history of ours, and the history of Fiat which has now become part of Stellantis.”

Italian politicians are hoping a new CEO, not named yet, will change Tavares's strategy to relocate more production in country; to this end, Elkann promises a €2 billion ($2.2 billion) investment to revitalize its vehicle output in Italy while confirming, “the new CEO will be announced within the first half of the year.”

Elkann adds that 2025 will be challenging but production should begin to improve next year with the addition of 10 new vehicle updates.