Stellantis will increase Italian production to 1 million units annually but the government doesn’t believe that is enough
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by Brad Anderson
2 hours ago
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Italy is keen on ramping up automotive production within the country and is actively seeking to entice another car brand beyond Stellantis to establish operations on its shores. According to reports, discussions have been held with Tesla and three Chinese carmakers. The goal is to elevate annual production to 1.3 million units.
Stellantis is currently the sole mainstream car manufacturer operating in Italy and last year, produced approximately 750,000 vehicles. Stellantis chief executive Carlos Tavares has committed to increasing production to 1 million units, a figure the company last reached in 2017 when it was still known as Fiat Chrysler, before its merger with the PSA Group in 2021. This commitment alone is not enough to satisfy Italian authorities.
While speaking during a parliamentary hearing, Italy’s industry minister Adolfo Urso said the government is getting “positive feedback” from talks with other brands and has been in touch with Tesla for several months. Urus added that discussions are also being held with three Chinese brands but did not specify which ones.
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Read: Italian Government Has No Plans To Buy Stellantis Stake
However, the managing director for Europe of BYD, Michael Shu, recently told Reuters that the company had been contacted by Italy when the Chinese firm was determining where it should build its first factory in Europe. It ultimately settled on Hungary and it has not yet committed to a second European site, so it is unlikely to be heading to Italy anytime soon.
Urso believes Italy needs to produce at least 1.3 million vehicles a year to preserve its national auto industry due to the challenges posed by the EV transition.
Earlier this year, Urso raised the idea of the Italian government buying a stake in Stellantis but recently stated that such a move is “off the agenda.” Tavares isn’t keen on the idea of Italy attracting another major carmaker to its shores either, rhetorically asking “if we invite more Chinese carmakers to produce in Europe, do you think it’s going to help?” during an interview two weeks ago.
