Italy’s deputy PM says Stellantis CEO Carlos Tavares should be ‘ashamed and apologise’ for ‘mismanaging an historic Italian company’

In Italy, tensions have escalated between the government and Stellantis, the multinational automotive company formed from the merger of Peugeot-Citroen and Fiat-Chrysler. The Italian government, led by Prime Minister Giorgia Meloni, has expressed concerns over Stellantis relocating production to lower-cost countries, which has resulted in job losses and factory closures in Italy. The far-right League party, part of the ruling coalition, has initiated 'Operation Truth' to investigate the financial support Stellantis has received from the government and the impact on Italian workers. Stellantis CEO Carlos Tavares recently stated that high energy costs make car production in Italy unfeasible, suggesting that significant incentives are necessary to boost demand for electric vehicles. This statement has drawn sharp criticism from Italian officials, particularly from Transport Minister Matteo Salvini, who has called for Tavares to apologize for what he describes as mismanagement of a historic Italian company. The Italian government has also taken action by withdrawing EU funds intended for an electric car battery gigafactory due to uncertainties surrounding the project. This decision reflects the government's frustration with Stellantis's commitment to Italian production amid a broader EU deadline to phase out petrol-powered cars by 2035. As the automotive industry faces significant changes, the Italian government remains committed to supporting its domestic manufacturing sector while navigating the challenges posed by the transition to electric vehicles and the competitive global market.