Italian Prime Minister Giorgia Meloni on Wednesday reportedly publicly chastised Stellantis NV STLA over its decision to move car production to countries with lower costs.
What Happened: Meloni expressed her dissatisfaction to lawmakers in Rome, Bloomberg reported on Wednesday. She stated that if Stellantis intends to label its cars as “Italian jewels,” they ought to be manufactured in Italy.
Stellantis has been the subject of criticism this week for advising its Italian suppliers to explore investment opportunities in Morocco, the report said. Meloni’s government, however, wants Stellantis to make a million cars in Italy in a year.
In a statement issued late Wednesday to Bloomberg, Stellantis reportedly reiterated its dedication to Italy, highlighting the several billion euros it has invested in developing new products and manufacturing sites within the country.
The CEO of Stellantis Carlos Tavares, meanwhile, urged for innovative ways to cut costs in view of the pricey transition to EVs that the auto industry is currently facing. He also addressed Italy’s rigid approach to EV incentives in conversation with reporters, which he believes has resulted in a decrease in production at Stellantis’s Mirafiori plant over the past year, the report added.
Why It Matters: Stellantis, with a market cap of $63.67 billion, has several brands under it including Alfa Romeo, Maserati, Lancia, and Fiat. It was formed upon the merger of Fiat Chrysler Automobiles with the French PSA Group in 2021.
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