While Stellar paralyzes the production of some of its factories in Italy because it does not sell enough cars, especially now that the demand for electric cars in Europe has slowed down, Italy takes 4.6 billion euros from the automobile industry to give it to Defense,
The Government of Giorgia Meloni had reserved those 4.6 billion euros to encourage the automobile industry in the country, now that it is going through really bad times. However, at the last minute, the transalpine Executive has changed its mind and has preferred to allocate that money to Defense.
The Italian automobile industry needed that money like May water.
The relationships between Stellantis and Italy They are not going through their best moment. The automobile giant led by Carlos Tavares has several brands that are practically a matter of state in the transalpine country, such as Fiat, Alfa Romeo, Lancia, Abarth and Maserati, however, the Italian Government is not happy with the decisions that the Italian government is making. group over the last few months.
Added to the controversy that ended up changing the name of the Alfa Romeo Milano to Alfa Romeo Junior were the stops in the production of the Fiat 500e and the Fiat Panda Hybrid, two models that are manufactured in Italy. In total, there are three Italian Fiat plants that will stop for several days in November.
Stellantis is paralyzing production in those Italian factories because the cars made there do not sell enough and Carlos Tavares has already warned that he is willing to sell brands if they do not make profits and to close factories in Italy, so the situation is critical.
Everything could be calmed if Stellantis received part of the 4.6 billion euros that Giorgia Meloni’s Executive had reserved for the country’s automobile industry, but now the Italian Government has changed its mind and has decided to transfer that money to the Defense sector, as reported Europa Press. If that money had ended up in the automobile industry, it would go directly to the electric cars that Stellantis manufactures in Italy and the electric cars that Chinese manufacturers would consider manufacturing in Italy to avoid European Union tariffs.
This decision only adds fuel to the “war” between Stellantis and the Italian Government. It also draws a very dark horizon for the country’s automobile industry because Italy is expected to close the year with car and van production of less than half a million units, that is, around 250,000 units less than in 2023.
Without these funds, the Italian automobile industry will continue to struggle and companies that produce in the country, such as several of the Stellantis brands, could consider abandoning Italy to produce in countries where production costs are lower, a measure with the one that Carlos Tavares has been threatening for months. That the Meloni Government has changed its plans and takes those 4.6 billion euros from the automobile industry may be “the last straw” for Tavares to finally execute his threats.
The employers’ association of the automobile sector in Italy, ANPHIA, has pointed out that “they are disconcerted by the decision of the Italian Government to reduce the Automotive Fund in order to adopt measures to support the reconversion of the supply chain by more than 4.6 billion euros.”
ANFIA clarifies that the automotive sector is the main Italian manufacturing sector and has more than 270,000 direct employeesso the cut “is unacceptable” and “is seriously endangering the survival of Italian excellence.”
It can also be a disastrous move in the face of possible investments of Chinese brands in Italyboth to sell their cars there and to install factories on Italian soil to avoid European Union tariffs on Chinese electric cars.
To this we must add the pressure from the Chinese Government on some of its brands to stop expansion in Europe to put pressure on the trade war between Europe and China and for Brussels to back down on its decision to raise tariffs on electric cars. Chinese.
As pointed out BloombergBeijing is telling its manufacturers to halt active searches for production hubs in Europe and signing new deals as negotiations between China and Europe over tariffs continue.
Bloomberg assures that, for now, Dongfeng has stopped its plans to manufacture electric cars in Italy, while Changan has canceled its debut event in Europe, which was to be held this week in Milan.
Source: www.motorpasion.com
