The departure of Carlos Tavares from Stellantis in early December has opened the door for the Italian government to reconcile its relationship with the automaker, which has been scarred by tensions. As the country’s only mainstream car manufacturer, Stellantis plays a crucial role in Italy’s economy and the local automotive sector. However, over the past year, Italy and Stellantis have found themselves at odds on several issues, including production goals and commitments to local manufacturing.
Tavares committed to ramping up local production, aiming to increase output from 750,000 vehicles to 1 million units annually. This move was seen as essential for strengthening Stellantis’ position in the country. Yet, despite these promises, Italian officials have expressed frustration with the automaker’s lack of sufficient follow-through. As a result, tensions escalated, and the government exhibited an increasing interest in courting foreign automakers.
According to local law, the government can seize historic brands that have been left dormant for at least five years. In July, rumors circulated that Italy would seize two of Stellantis’ unused brands—Autobianchi and Innocenti— and offer the names to Chinese companies to get them to establish facilities on Italian soil.
The government also delivered a sharp warning to Stellantis in August, demanding the company follow through on its promise to build a battery production plant or risk losing access to significant financial support. Italy had allotted the company $389 million in EU post-COVID recovery funds, and the automaker’s failure to deliver would have jeopardized this crucial investment.
With Tavares now gone, Italian officials see this as a potential turning point. Industry Minister Adolfo Urso, who had openly criticized Tavares, has called for a comprehensive plan to protect Italy’s automotive factories and preserve jobs. The focus now shifts to Stellantis’ new leadership, with the hope that a more cooperative approach will emerge—one that includes a solid financial commitment to maintaining manufacturing operations in Italy.
The Italian government is ready and dedicated to doing its part, given that Stellantis remains firmly invested in the country. Both sides must find common ground to ensure the automaker’s long-term success in Italy, with a clear emphasis on supporting local jobs and production.
