The electric vehicle revolution is moving at two very different speeds, and one of the world’s largest automakers is adjusting its strategy accordingly. Stellantis CEO Antonio Filosa said on October 13 that electric vehicles account for roughly 7% of U.S. auto sales in 2026, a level that highlights the growing divide between American and European car buyers.
Speaking at the Paris Motor Show, Filosa argued that changing government policies and consumer preferences are pushing North America toward a slower transition, with hybrids, gasoline engines and range-extended electric vehicles playing increasingly important roles.
Across Europe, however, battery-electric sales are climbing, supported by a broader selection of affordable models and stronger demand. For Stellantis, the challenge is maintaining competitiveness in both markets without losing sight of the industry’s longer-term electric future.
Stellantis CEO Sees a Slower American Electric Vehicle Transition
Antonio Filosa delivered his assessment during the Paris Motor Show on October 13, arguing that the American market will eventually embrace electric vehicles but at a slower pace than other major regions. He placed their current share of U.S. auto sales at approximately 7% and linked weaker demand to regulatory changes and renewed consumer interest in alternative powertrains. His remarks reflect a shift away from the assumption that every major automotive market will move toward full electrification on the same timetable.
However, the 7% figure is a rounded assessment rather than an exact industry-wide measurement. Cox Automotive reported that battery-electric vehicles represented 6.5% of U.S. new-vehicle sales during the third quarter of 2026, compared with 5.8% in the preceding quarter. Filosa also suggested that the share was unchanged from five years earlier, although Cox’s historical data places it at just 3.2% in 2021. American EV adoption has grown over that period, even as the market has weakened recently. The larger point is that demand has not developed as quickly or consistently as automakers once expected.
U.S. Electric Vehicle Sales Struggle After Federal Incentives Disappear
A major turning point came when the United States ended its federal clean-vehicle purchase credits for vehicles acquired after September 30, 2025. Previously, qualifying new electric vehicles could receive incentives worth as much as US$7,500. Losing that financial assistance changed the economics for buyers comparing electric models with gasoline-powered alternatives. A household considering a relatively expensive electric SUV, for example, suddenly had to evaluate its purchase without a substantial federal subsidy helping offset the upfront cost.
The resulting slowdown has been significant. Motor Intelligence data reported by Reuters showed U.S. electric vehicle sales falling 30.7% during the first nine months of 2026, with their market share declining to approximately 6% from 8.5% a year earlier. Still, the picture is not entirely negative. Cox Automotive estimated that Americans purchased 266,630 battery-electric vehicles in the third quarter, representing a 7.7% increase from the second quarter. That suggests demand may be finding a more stable level, although it remains considerably below the exceptional sales recorded before federal incentives expired.
Europe Moves Ahead as Electric Cars Capture a Larger Market Share
Across the Atlantic, the numbers tell a different story. The European Automobile Manufacturers’ Association reported that battery-electric vehicles accounted for 21.7% of new European Union car registrations between January and August 2026, compared with 15.8% during the equivalent period in 2025. More than 1.64 million fully electric cars were registered across the EU during those eight months. Germany, France and several smaller European markets recorded strong increases as consumers gained access to more models and manufacturers expanded their electric offerings.
Europe’s progress reflects a combination of factors rather than one decisive policy. Higher fuel costs have made electricity increasingly attractive for daily transportation, while emissions regulations continue encouraging manufacturers to offer cleaner vehicles. Reuters reported that more than 150 electric models were available in Europe during the first half of 2026, with numerous options priced below €25,000. Government incentives in several countries further reduce purchase costs. For Stellantis, whose European brands include Peugeot, Citroën, Opel and Fiat, these conditions make continued investment in electric vehicles commercially important, even while North American priorities evolve differently.
American Drivers Are Turning Toward Hybrids Instead
The slowdown in fully electric vehicle sales does not necessarily mean Americans are rejecting electrification altogether. Instead, many are choosing vehicles that combine improved fuel efficiency with familiar gasoline-powered convenience. Reuters reported that conventional hybrid sales increased 23% during the first nine months of 2026, accounting for 15.6% of the U.S. new-vehicle market. Cox Automotive’s third-quarter estimates also found that nearly one-quarter of new vehicles sold were electrified in some form, including conventional hybrids, plug-in hybrids and fully electric vehicles.
The appeal becomes clearer when considering everyday driving needs. A family living in a suburban or rural community may want better fuel economy without depending entirely on public charging infrastructure. A conventional hybrid can provide that flexibility because its battery is charged through the vehicle’s own systems rather than an external plug. Fully electric vehicles can offer lower running costs, particularly with convenient home charging, but purchase prices and charging access remain important considerations. Filosa’s comments suggest Stellantis increasingly recognizes that customers may prefer intermediate technologies before committing to a fully electric vehicle.
Range-Extended Electric Trucks Could Become a Major Stellantis Priority
One technology receiving particular attention from Filosa is the range-extended electric vehicle. Unlike a conventional battery-electric model, a range extender includes a combustion engine that generates electricity when additional energy is needed. The vehicle still uses electric motors for propulsion, but the onboard generator reduces its dependence on charging stations during longer journeys. Filosa identified growing American interest in this approach, particularly for large pickup trucks and SUVs, where driving range, towing performance and versatility strongly influence purchasing decisions.
Stellantis has already developed a prominent example through its Ram 1500 REV range-extended pickup. The manufacturer advertises a projected combined driving range of up to 690 miles, using a battery pack and a gasoline-powered generator. That figure is a manufacturer target rather than a guarantee of real-world performance. The strategy also reflects wider changes within the company’s portfolio. Earlier in 2026, Stellantis announced plans to discontinue several conventional plug-in hybrid offerings in the United States while emphasizing hybrids and range-extended alternatives. The company is attempting to preserve electric-driving benefits without requiring every customer to abandon gasoline entirely.
Stellantis Is Building Different Strategies for Different Markets
Filosa’s comments also address a broader transformation of the automotive industry. At a September investor conference, he described a widening division between the United States and other global markets. Trade restrictions, regulatory differences and changing customer expectations are making it increasingly difficult to sell essentially the same vehicle strategy everywhere. Stellantis is responding by relying more heavily on domestic engineering and development for the American market while pursuing international partnerships to strengthen its offerings elsewhere.
Europe provides the clearest example of that approach. Stellantis is working with Chinese manufacturers Leapmotor and Dongfeng to improve development efficiency, reduce costs and strengthen its electric vehicle technology. Reuters reported on October 13 that Leapmotor and Stellantis’ Opel brand are collaborating on a midsize electric SUV. The company is also pursuing manufacturing arrangements intended to support European production. These partnerships allow Stellantis to draw on established Chinese expertise in competitive electric vehicles while adapting products to European requirements. In North America, meanwhile, the company is emphasizing familiar brands, larger vehicles and powertrain choices that reflect different customer demand.
Stellantis’ Latest Shipment Figures Reveal a Growing Regional Divide
The company’s newest operating figures reinforce how differently its major markets are performing. On October 13, Stellantis reported estimated worldwide consolidated shipments of approximately 1.286 million vehicles during the third quarter of 2026, a decline of 1% from the previous year. North American shipments fell 12% to 357,000 vehicles, largely because of planned production shutdowns that affected several Jeep models. The Grand Cherokee and Compass experienced substantial shipment reductions, although stronger Ram demand helped offset some of the decline.
Europe moved in the opposite direction. Stellantis recorded approximately 588,000 vehicle shipments across its enlarged European region, an increase of 10% from a year earlier. The company attributed part of that improvement to growth in battery-electric vehicles and stronger contributions from its Leapmotor partnership. Leapmotor-branded shipments reached approximately 44,000 units, increasing by 34,000 from the prior year. These figures do not prove that America’s slower EV adoption caused its production decline; Stellantis specifically cited factory downtime. Nevertheless, the contrast highlights the different pressures facing the company: maintaining momentum in an increasingly electric European market while rebuilding sales and production performance in North America.
Canada Faces a Different Set of Electric Vehicle Decisions
Canada occupies a distinctive position between the two markets. Its automotive manufacturing sector is deeply integrated with the United States, but Canadian EV purchasing trends and government incentives do not mirror American conditions exactly. Statistics Canada reported that zero-emission vehicles represented 10.7% of new Canadian motor vehicle registrations during the second quarter of 2026. A total of 58,811 vehicles were registered in that category, an increase of 26.7% from the same period a year earlier. The Canadian definition includes both battery-electric vehicles and plug-in hybrids, making direct comparisons with U.S. battery-electric market share misleading.
Ottawa has also chosen a different policy response from Washington. The federal government introduced a new Electric Vehicle Affordability Program in 2026, offering eligible buyers up to C$5,000 for battery-electric vehicles and C$2,500 for plug-in hybrids. It also announced plans to replace its Electric Vehicle Availability Standard with stronger emissions rules that provide manufacturers greater flexibility in choosing technologies. Those decisions matter to automakers such as Stellantis, which must coordinate Canadian production with North American demand while accounting for Canada’s distinct consumer incentives, industrial priorities and longer-term emissions objectives.
Canadian Stellantis Factories Highlight the Stakes for Auto Workers
For communities dependent on automotive manufacturing, Stellantis’ strategic decisions have consequences extending far beyond showroom sales. The company’s Windsor Assembly Plant in Ontario produces vehicles representing different approaches to the energy transition. The lineup includes gasoline-powered Dodge Charger models, all-electric Charger Daytona variants and Chrysler minivans. In December 2025, Stellantis announced plans to expand Windsor operations with a third shift and potentially as many as 1,500 additional jobs, reflecting its intention to support vehicles using multiple powertrains.
Elsewhere in Ontario, the future of Stellantis manufacturing remains more uncertain. Unifor raised concerns in September 2026 after the company entered a memorandum of understanding concerning a potential sale of its Brampton Assembly Plant. Negotiations over job security subsequently became increasingly contentious, and the union announced plans for a strike authorization vote among Stellantis workers on October 17 and 18. These developments are not solely about electric vehicles; they also involve trade policy, investment commitments and manufacturing strategy. However, they illustrate why Canadian workers have a substantial interest in where Stellantis directs future spending and which vehicles it chooses to build.
Stellantis Still Expects Electrification to Shape the Industry’s Future
Despite his concerns about the current American market, Filosa has not predicted the disappearance of electric vehicles. He told the Paris gathering that he remains confident the United States will ultimately embrace electrification, although the transition will likely be slower than elsewhere. That position is consistent with Stellantis’ FaSTLAne 2030 strategy, unveiled in May 2026. The company outlined more than €60 billion in planned investment through 2030, supporting new models, refreshed products, technology development and manufacturing improvements across multiple powertrain categories.
The strategy includes substantial battery-electric investment alongside hybrids, range-extended vehicles and conventional engines. Stellantis has also introduced its STLA One modular architecture, designed to accommodate different vehicle sizes and powertrains, with a planned rollout beginning in 2027. Such flexibility could help the company adjust production as regional demand changes. For consumers, the outcome may be a broader selection of vehicles rather than a sudden industry-wide switch to battery power. For Stellantis, success will depend on matching that selection with competitive prices, reliable technology and sustainable manufacturing. The long-term direction may still favour electrification, but the road toward it increasingly looks different on each side of the Atlantic.
