Italy’s Prime Minister Giorgia Meloni is locked in a heated battle with automotive giant Stellantis, pushing for increased electric vehicle production on Italian soil. This ongoing conflict, reported by POLITICO, highlights the tensions between economic patriotism and the global nature of the automotive industry.

The Stellantis Saga

Stellantis, formed from the merger of Fiat-Chrysler and PSA Group, has become a prime target in Meloni’s campaign for economic patriotism. The company, which owns iconic Italian brands like Ferrari and Maserati, alongside international names such as Peugeot and Jeep, has faced criticism for its production decisions.

Italian Government Clashes With Stellantis Over Ev Production And National Identity

Electric Vehicles at the Center of the Storm

The conflict has intensified around electric vehicle production:

The government seized 134 Fiat Topolino EVs, produced in Morocco, due to Italian flag stickers that could mislead buyers about the cars’ origin.
Stellantis was forced to rename its “Milano” model (built in Poland) to “Junior” after government pressure.
Production in Italy dropped by over 25% in the first half of this year compared to 2023, according to unions.

Government Incentives and Chinese Courtship

To counter the decline in domestic production, the Italian government is taking action:

Offering financial support for low-emission vehicle purchases, with €750 million allocated for 2025 and €1 billion annually from 2026.
Exploring partnerships with Chinese automakers to establish factories in Italy.

Industry Minister Adolfo Urso stated, “The law is the same for everyone,” emphasizing the government’s stance on protecting Italian manufacturing interests.

Stellantis’ Response

Stellantis CEO Carlos Tavares warned that opening doors to Chinese carmakers could have “significant social consequences.” The company, however, has not publicly committed to increasing its EV production in Italy.

EVXL’s Take

The clash between Stellantis and the Italian government underscores the challenges faced by traditional automakers in the transition to electric vehicles. As we’ve seen in recent Tesla news, the EV market is becoming increasingly competitive, forcing established companies to balance national interests with global production strategies.

This situation raises important questions about the future of automotive manufacturing in Europe and the role of government intervention in shaping the EV landscape. It will be interesting to see how this standoff affects Italy’s position in the global EV market and whether it will lead to increased domestic production or further offshoring.

What are your thoughts on Italy’s approach to boosting domestic EV production? Share your opinion in the comments below.