Fiat’s parent company and Italy are on a collision course

“If anyone initiates a Chinese competition, they will also be responsible for any unpopular actions that should be taken,” he said. Carlos Tavares what happened during a visit to Turin, the historic headquarters of Fiat. By “the person”, the CEO of Stellantis refers Italian governmentwho has been with him for a while now bumblebee it is. It started with allegations that the brand group did not invest enough in Laars, after which Tavares said that too few subsidy programs were taken from politics to promote electric driving. And he still thinks so today.

There is one in between both sides a tough wrestling match emerge. The Italian government has opened the door for a non-Italian brand to establish itself – it is known that way BYD it was drawn, but also Tesla is among the competitors – and when Alfa launched its SUV in Milano, the Italian Minister of Trade and Made in Italy shot. Adolfo Urso in a spasm and called the use of the name “illegal”.

“That car Milano fire cannot be built in Poland,” Urso said, “That is prohibited by Italian law.” That is also correct. In 2003, a law was passed stating that products with an Italian name can only be produced in the country itself. As we reported earlier this week, the name Milano is being changed and will be replaced by Junior.

The only country with one car group

Tavares is more concerned about the possibility of a Chinese production house on Italian soil. The boss of the parent company of almost all Italian brands (Fiat, Alfa Romeo, Maserati) says that rumors that his company is planning. Italy of leave be the basis “fake news”. Although rumors are spreading that the company is in the country 3,700 jobs at risk to make According to Tavares, if the Chinese car brand lands Laars, this will increase its competition and the company will have to look at how it can reduce its costs. Read: production then moves to places where labor costs are lower. The Italian bosses defend their plans by saying that their country is the only one in the world where only one car group is active in production – although they look no further than their crown jewel, Ferrari.

However, Tavares previously promised to continue his commitment to the country. Production would be disappointing to 1 million vehicles by the end of this decade are being improved and if the right conditions are met, the company also wants to extend the Panda meeting in Pomigliano d’Arco until then.

Fiat: big but less important

But the auto industry’s highest-paid CEO doesn’t get much credit. Last Friday a large demonstration was held regarding the dissatisfaction that the production in Turin factory dropped to 78,000 units per year (maybe only 50,000 this year after adjusting for electricity production 500), where this was still about 200,000 at the beginning of the century. It was the first time in fifteen years that six trade unions took to the streets in a united protest, which shows to a great extent the extent and scope of the discontent. Turin has also lost its main role in the research and development of new cars, time Fiat – mainly thanks to strong sales in South America – a major car brand in the portfolio of fourteen members of Stellantis.

The last word in this dispute has not yet fallen, and in the future the tension between the national heritage and the international car groups will increase even more.

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