Italy has called on the European Union (EU) to conduct a thorough review of the ban on the sale of combustion vehicles starting in 2035, fearing that the measure could lead to the “collapse” of the EU automotive industry.
Several ministers from Giorgia Meloni’s government have recently opposed the EU’s climate policy, arguing that it is an “absurd” strategy driven by ideological motivations and that it currently needs adjustments to reflect “market realities” amid the widespread slowdown in electric vehicle sales.
Additionally, Rome is increasingly concerned that European manufacturers like Volkswagen or Stellantis are falling behind their competitors in China and the United States, where local companies have benefited from a surge of state subsidies in recent years that have funded the transformation of their industries.
Italy’s Industry Minister, Adolfo Urso, recently spoke of an “uncertain landscape” affecting, among others, the German automotive industry, where he says “clarity” is needed to avoid a “collapse.”
“Europe needs a pragmatic vision; the ideological approach has failed. We have to acknowledge this,” he said, adding that he is not opposed to the expansion of electric vehicles but also believes that the transition to new mobility technologies should involve other types of propulsion, such as hybrid or hydrogen.
In fact, the coalition government party, the League, led by Deputy Prime Minister Matteo Salvini, is reportedly prepared to propose legislation to compel the Meloni government to revoke the ban in Italy.
European electric vehicle market in crisis
The Italian minister’s comments come amid a crisis with Volkswagen in Germany, where the group faces worker protests over the potential closure— for the first time in its 87-year history— of at least two plants in the country and the resulting layoffs due to a lack of orders to justify keeping the factories operational.
In July, the group admitted that it was considering closing the Audi factory in Brussels, Belgium, due to the decline in demand for high-end electric vehicles.
Meanwhile, other manufacturers like Stellantis reported a 36% drop in production in Italy at the end of the last semester.
At the group’s Mirafiori plant in Turin, where electric Fiat 500s are assembled, production between January and June plummeted by 63%, and activity had to be halted for 30 days last month.
