Italian Prime Minister Giorgia Meloni has criticized Stellantis NV, the multinational automotive company, for its plans to shift car production to countries with lower costs. Meloni expressed her concerns about this move, especially at a time when the industry is striving to transition towards electrification. She emphasized the need to defend the national interest and maintain production in Italy, stating that if Stellantis markets its cars as Italian jewels, they should be manufactured in Italy.
News regarding Stellantis' communication to Italian suppliers about investment opportunities in Morocco has aggravated the situation. This decision has drawn criticism as many companies in the auto industry have turned to Morocco for cheaper electric vehicle production. Reflecting Italy's discontent, Meloni's government is urging Stellantis to produce 1 million vehicles annually within Italy. The company's cost-cutting measures have faced increasing scrutiny, with CEO Carlos Tavares mentioning Italy's strict stance on EV incentives resulting in lost production at the Mirafiori plant over the past year.
When questioned about the letter sent to Italian suppliers, Tavares responded that both suppliers and automakers must become more innovative in reducing costs given the expensive transition the industry is experiencing. In a statement, Stellantis reiterated its strong commitment to Italy, highlighting the billions of euros invested in new products and production sites within the country.
Tavares, known for his strategic management and stringent cost-cutting measures, has been driving Stellantis forward since the merger of Italy's Fiat Chrysler and France's PSA Group in 2021. However, Meloni's remarks suggest dissatisfaction with the merger, referring to it as a "French acquisition" of the historic Italian group. She pointed out the company's industrial choices seeming to favor French requests more than Italian ones.
The balance of power on the Stellantis board between Italy and France has been a longstanding point of contention. With France owning a 6.1% stake through state-owned Bpifrance and having representatives on the board, while Italy holds no stake or board representation, tensions between the two countries have arisen. Notably, Tavares has previously clashed with the French government on matters relating to electric vehicle production.
Meloni's criticisms towards Stellantis follow previous disputes with France, with relations between her and President Emmanuel Macron being tense at the beginning of her mandate. Italy has historically harbored resentment towards French business acquisitions in the country, perceiving them as domineering. In contrast, Meloni has forged a closer relationship with German Chancellor Olaf Scholz, leading to increased business collaboration between their respective countries.