Automotive News Europe — 2024-04-10
Automotive Industry
The Italian government has said it is talks with Tesla and Chinese automakers, including Chery Auto, to attract one of them to manufacture in Italy.
Chinese car production in Italy could force some tough decisions for Stellantis including plant closures, Stellantis CEO Carlos Tavares said.
The Italian government has said it is talks with Tesla and Chinese automakers, including Chery Auto, to attract one of them to manufacture in Italy and increase national automotive output after years of decline.
"If someone wants to introduce Chinese competition, they would be responsible for the unpopular decisions that might have to be taken," Tavares said at an event in Turin on Wednesday, 10 April 2024.
"If we are under pressure, the only one thing we could do is to accelerate our efforts to increase productivity to be competitive," he said.
Tavares said Stellantis would probably lose market share and sales volumes. "Then we might not need so many plants as we have now," he said. "We are ready to battle, but in a battle there are casualties."
Stellantis owns the Italian brands Fiat, Alfa Romeo and Maserati.
Tavares said speculation that Stellantis was planning to divest from Italy was "fake news."
"We are investing heavily in Italy," said Tavares, who in recent months crossed swords with the Italian government over the group's production levels in the country.
Tavares is overhauling Stellantis's industrial footprint — including with stringent cost reductions — at a time when governments in Europe are trying to protect local industries put at risk by the shift to EVs.
In Italy, Stellantis has faced criticism over deliberations to move production to lower-cost countries.
Tavares met with local unions Wednesday, 10 April 2024, ahead of a strike planned for Friday, 12 April 2024, to protest the automaker's plans to cut thousands of jobs in the country.
Fiat investment
Tavares opened Stellantis' facility for the production of electrified dual-clutch transmissions (eDCT) for hybrid and plug-in hybrid electric vehicles in the group's Mirafiori complex in Turin on Wednesday, 10 April 2024.
He said the automaker willl extend production of Fiat Panda gasoline cars in southern Italy until 2030 and committed €100 m ($108 m) to develop a more affordable battery for the electric Fiat 500.
The Panda's combustion engine version was scheduled to be phased out in 2027, while a battery-electric Panda is expected to be launched later in 2024.
"We are here to stay," he said, adding that talk of Stellantis leaving Italy is "fake news."
Tavares has been relying on cost cuts to make Stellantis leaner and bolster profit, citing pressures from the EV shift as reason to thin workforce in countries including France and the US.
In Italy, Stellantis plans to eliminate around 3,700 jobs, according to the Fiom union. The automaker has declined to comment on the exact number of staff changes but has said any departures will be on a voluntary basis.
EV demand has cratered in Italy since the start of 2024, as buyers wait for new subsidies that Rome flagged in late 2023.
"Many promises have been made to Italian consumers to facilitate access to electric vehicles, but despite the promises, the incentives have not yet been released," Tavares said.