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ROME (Reuters) – A car sold as an “Italian jewel” will have to be made in Italy, Prime Minister Giorgia Meloni said, fueling friction between the government and Stellantis as they hold difficult negotiations on a long-term plan for the domestic auto industry. sector. industry.
Meloni, who heads a center-right cabinet, also told lawmakers on Wednesday that Stellantis, which owns Fiat, the country’s only major automaker, has raised possible options contrary to the country’s interests.
Stellantis, which Meloni described as the product of a de facto French takeover of Fiat Chrysler, has been in talks with the Italian government since last summer about a plan to increase its annual production in Italy to 1 million vehicles, up from 750,000 last year. year.
The automaker needs action, adding incentives to the sale of electric vehicles.
“If you want to sell a car…. advertising it as an Italian jewel, that car must be made in Italy,” Meloni said, adding Stellantis was more focused on France than on Italy in its industrial choices.
A Stellantis spokesperson said the organization is strongly committed to Italy.
“The company has invested several billion euros in Italian operations for new plants and production sites,” he said, adding that more than 63% of the cars produced in the country last year were exported.
Created after the merger of Fiat Chrysler and France’s PSA in early 2021, the Dutch company Stellantis is home to 14 brands, Alfa Romeo, Peugeot and Jeep. The French state is one of its main investors, with a 6% stake.
The Italian government needs to improve relations with the automaker, Meloni said.
“To protect the national interest, we identified a balanced relationship with Stellantis. “
However, relations with the Agnelli family, Stellantis’ main shareholder, the Exor holding company, have been strained since Meloni’s management took over in late 2022.
Exor declined to comment on Meloni’s comments.
The government is expected to unveil its new incentive program on Feb. 1, more than 900 million euros ($981 million) for this year.
On Tuesday, Stellantis Chief Executive Carlos Tavares said Italy’s restrictive incentives to acquire had cost the country several months of cuts in car production.
Tavares, who has built Stellantis into one of the most successful automakers in the industry, said the company needed to produce value-added vehicles in countries such as Italy and France, while leaving the production of cheaper vehicles in cheap countries.
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(Reporting by Angelo Amante and Giuseppe Fonte in Rome; additional reporting by Giulio Piovaccari in Milan; editing by Sharon Singleton and Bernadette Baum)