MILAN, Oct 20 (Reuters) - Stellantis ( STLA ) CEO

announced on Monday 400 new hires in Italy and confirmed plans

to ramp up output in the country while warning that European

Union rules to cut carbon emissions need to be changed to

support car production in the region.

Antonio Filosa, who met Italian unions in Turin in one of

his rare appearances since he took the CEO job in June, said

Fiat maker Stellantis ( STLA ) would employ the new workers at its

Mirafiori complex to support a production increase of the new

hybrid Fiat 500.

He reiterated his criticism of EU climate regulation,

including a 2035 ban on new petrol-powered vehicles.

"Having EU imposed such stringent targets in such a short

period of time has displaced both supply and demand," he was

quoted as saying by a company spokesman.

"We need to change the rules and offer customers the full

range of vehicles they want and can afford," he said.

The meeting with unions, also attended by Stellantis' ( STLA ) new

Europe chief Emanuele Cappellano, focused on the plan the group

presented in December for Italy, which, however, is not expected

to bring benefits to local plants before next year.

"The Italian Plan is solid and confirmed," Filosa told

unions.

In the first nine months of 2025, Stellantis' ( STLA ) Italian output

fell 32% to 265,500 vehicles, according to union FIM-Cisl.

Full-year production is expected to drop to just over

310,000 units, including fewer than 200,000 passenger cars,

below last year's 283,000, the lowest in nearly 70 years.

Filosa said Stellantis ( STLA )-backed battery firm ACC was still

evaluating whether to proceed with plans to build a plant in

Italy, with the final decision due by the end of this year.

"In the event of a negative decision, we are working on a

plan B to protect our employees," he said.