Excitement in Italy

Europe’s next car giant is now wobbling

Stellantis employs around 43,000 people in Italy.

(Bild: AFP/ETIENNE LAURENT)

The surprising resignation of Stellantis boss Carlos Tavares has not only taken the car manufacturer's workforce by surprise. The Italian government is now demanding an explanation. Fiat heir John Elkann is to appear before parliament - but has not wanted to do so in the past.

The governing parties are demanding that John Elkann, Chairman of the Board of Directors, report to Parliament on the future prospects of the Stellantis plants in Italy. "The transition to new management requires responsibility, job security and an expansion of expertise. It is therefore all the more important that John Elkann comes to Parliament as soon as possible to report on the future of Stellantis," said "Fratelli d'Italia" group leader Tommaso Foti.

The Lega around Deputy Prime Minister Matteo Salvini criticized Tavares' leadership at Stellantis. "We are curious to know how much money Tavares will receive as a bonus for his disastrous management of Stellantis," commented the Lega. The strongest trade unions also expressed concern about the sudden turnaround at Stellantis.

Fiat heir John Elkann

(Bild: AFP/MARCO BERTORELLO)

Relations have been strained for months
Relations between the Italian government and Stellantis have been strained for months. Italian Prime Minister Giorgia Meloni recently accused Elkann of disrespecting parliament. Elkann's decision in October not to report to the parliament in Rome on his companies' plans for car production in Italy earned him a great deal of criticism.

The Fiat heir did not heed the call of the Chamber of Deputies' Industry Commission, which had asked him to speak to the parliamentary chambers in Rome about the future Stellantis strategy in Italy after rumors of possible factory closures had circulated. This drew a lot of criticism, including from the Prime Minister.

The parties described Elkann's decision not to appear before parliament as "disrespectful". Although the entrepreneur declared his willingness to engage in an "open and respectful dialog" with the Italian institutions, he emphasized that he had no news to report for the time being and that he was already in talks with the Ministry of Industry in Rome.

Tens of thousands of jobs at risk
According to trade unions, around 70,000 jobs are at risk in Italy due to the ban on the use of combustion engines in new cars from 2035. The automotive industry in Italy, which is still largely focused on traditional combustion technology, directly or indirectly employs more than 270,000 people and generates more than 5 percent of Italy's gross domestic product (GDP), according to industry association Anfia.

According to the data, sales of fully electric cars in Italy fell by 27 percent last year and accounted for just 3.7 percent of total new registrations.

Is the industry's next giant wobbling?
The trade unions estimate that without countermeasures, at least 12,000 jobs are at risk in the Stellantis plants alone and just as many, if not more, in the plants that manufacture components. The Meloni government is pushing for a plan to increase car production in Italy to one million units per year.

The Stellantis car group was created in January 2021 from the merger of Fiat Chrysler and the French PSA Group. It includes brands such as Opel, Peugeot, Fiat and Alfa Romeo. The Group employs around 43,000 people in Italy - before the 2021 merger, it had more than 51,000 employees.