Stellantis NV

STLAM: XMIL (ITA)
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European Commission's Automotive Industry Action Plan Underwhelms, With Few Concrete Initiatives

The EU Commission released its automotive industry action plan on March 5. While we commend the flexibility provided for carbon dioxide targets, we think the remaining proposals lack details, timelines, and regulatory enforcement. The positive share price moves of the European auto original equipment manufacturers appear to reflect the reversal of expected CO2 emission penalties. We make no changes to our fair value estimates for the European automakers.

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