TURIN, Nov 25 (Reuters) - Stellantis ( STLA ) Chairman

John Elkann on Tuesday warned that the European auto industry

risks an "irreversible decline".

Speaking in Turin during an event marking the start of

large-scale production of the new hybrid version of the Fiat 500

small car, Elkann said the industry as a whole had drawn up a

package of proposals for the European Commission to give

automakers more flexibility on emissions targets and that this

would allow the sector to avoid such decline.

The European Commission is due to present on December 10 a

package of proposals as part of its scheduled review of EU

carbon emissions regulation for the auto industry.

Elkann earlier this month said Stellantis ( STLA ) backed

a string of measures

put t

o the EU to support the European auto industry.

Those proposals include allowing plug-in hybrids, range

extenders and alternative fuels beyond 2035, averaging interim

carbon reduction goals fixed for 2030 over several years,

introducing a wide scrappage scheme on existing cars and

adapting regulation to favour the production of small cars.

Gianluca Ficco of UILM union said in a statement that the

start of production of the hybrid Fiat 500 was positive for

Italian output but added that the EU needs to change rules for

the auto industry, "before it's too late" and to avoid tough

consequences for the industry and jobs.