The manufacturing of Chinese cars in Italy could force Stellantis to make some “tough decisions,” said Carlos Tavares, the company’s CEO, which is Italy’s only major car manufacturer.
The Italian government has said it is in talks with Tesla and Chinese manufacturers, including Chery, to attract one of them to manufacture in the country and boost domestic car production after years of decline.
“If someone wants to introduce Chinese competition, they would be responsible for the unpopular decisions that might have to be made,” Tavares said at an inauguration event for Stellantis’ facilities for the production of electrified dual-clutch transmissions (eDCT) for hybrid and plug-in hybrid electric vehicles, at the group’s Mirafiori complex in Turin.
He continued, “If we are under pressure, the only thing we can do is accelerate our efforts to increase productivity and be competitive.”
Furthermore, he said that Stellantis would likely lose market share and sales volumes.
“Then perhaps we won’t need as many plants as we have now. We are ready for the battle, but in a battle, there are casualties,” he acknowledged.
Additionally, Tavares said that speculation that Stellantis planned to divest in Italy was “fake news.”
“We are investing heavily in the country,” acknowledged Tavares, who in recent months has clashed with the Italian government over the group’s production levels in the country.
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He announced that the carmaker would extend the production of its best-selling Fiat Panda city car, with a petrol engine, until 2030, in an attempt to provide affordability to customers.
The internal combustion engine version of the Panda, produced in Pomigliano d’Arco, near Naples, was scheduled to be phased out by 2027, while a new electrified version of the vehicle is expected to be launched later this year.
