Stellantis wants Italy government support to hit million model mark

By Giulio Piovaccari

MILAN (Reuters) – Stellantis CEO Carlos Tavares said a production target of one million vehicles in Italy it is discussing with Rome was well within reach but it could not be a one-sided commitment and the government must support it.

Tavares and Italy’s Industry Minister Adolfo Urso agreed this month on an aim to increase annual automotive output in the country, although without specifying a time frame.

“We are not afraid of the one million mark,” Tavares said after the Franco-Italian group earlier on Wednesday announced forecast-beating results for the first half of the year.

“Do we have the manufacturing capacity to achieve that? Yes, we have. Can we supply the electric powertrains, the batteries, the electric motors, the electrified transmissions? Yes, we can,” he said.

“But let’s not forget that it always (depends on) the size of the market”.

Urso said the latest financial results from Stellantis showed that the group can invest more in Italy.

“Today’s data on Stellantis’ revenues and profits tell us that this large multinational has the resources to invest more in our country,” he said in a statement.

Urso intends to promote the domestic production of Stellantis through the EU funds that would be freed up by a planned overhaul of the country’s post-COVID recovery plan, which is under negotiation with European Union authorities

Stellantis, the parent of brands including Fiat and Alfa Romeo, produced fewer than 700,000 vehicles in Italy in 2021 and in 2022, including vans. According to some forecasts the output will likely rise to over 800,000 units this year.

Fiat Chrysler, which merged with France’s PSA in early 2021 to create Stellantis, last produced over one million vehicles in Italy back in 2017.

Tavares said that setting a timeline for the one million goal depended on several factors, including regulation, supporting the use of cars and their affordability and energy costs.

“It cannot be only on the commitments of Stellantis. It has to be on the commitments of the country,” the CEO said, adding discussions with Rome were “constructive” and that an agreement could be reached in the next few weeks.