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Italian government threatens Stellantis to sell its brands to Chinese

Italy's prime minister says government ready to do its part if Stellantis keeps factories and jobs in the country

Dec 17, 2024 10:57 78

Italian government threatens Stellantis to sell its brands to Chinese  - 1

After Carlos Tavares abruptly parted ways with Stellantis in early December, Italian authorities are hoping to mend ties with the company and ensure it has a strong presence in the country.

Prime Minister Giorgia Meloni said: "We evaluate economic arguments on their own merits. This applies to Stellantis as well as to any other company operating in Italy. If the approach is constructive, if there is a desire to save factories and jobs, we are ready to do our part".

As you know, the conflict between Stellantis and the Italian government began last year. The concern is the only major car manufacturer in Italy and Tavares threatened to move the concern's factories out of the country. Now that he is no longer a factor, things are starting to look up.

Still, tensions remain high as Italy’s leadership plans to partner with several Chinese automakers in an attempt to convince them to set up production facilities in the country. In July, it was reported that the Italian government could seize two inactive brands from Stellantis: Autobianchi and Innocenti and sell them to Chinese companies.

Local laws allow the government to acquire historic brands that have not been used for at least five years. Italy issued a stern warning to Stellantis in August that the company must commit to building the promised battery factory or risk losing €370 million in public funding from the EU’s Covid-19 recovery fund.

According to Reuters, Italian Industry Minister Adolfo Urso said that Stellantis must make firm commitments to the nation and protect its local interests. “There must be a strong Italian interest in the Stellantis industrial plan, which protects national factories. Tavares is gone, he didn't understand reality,” says Urso.