Stellantis, Italy’s prominent automaker, has been grappling with a period of reduced automotive production due to the Italian government’s cautious stance on incentives, according to Carlos Tavares, the CEO of Stellantis. During a visit to the group’s expansive van-making facility in Atessa, central Italy, Tavares emphasized the need for government support, particularly in promoting electric vehicle (EV) sales, to sustain production levels.

Plea for EV sales support

Stellantis, the owner of Fiat, has persistently urged the Italian government for the past nine months to provide incentives for EV sales. Tavares expressed concern about protecting the Mirafiori plant in Turin, responsible for producing vehicles such as Fiat’s 500 electric small car. The plant has experienced temporary lay-offs due to subdued demand, prompting the automaker to seek governmental backing for EV sales to bolster production.

Industry talks and divergent goals

Stellantis has been engaged in discussions with the Italian government since last summer regarding a long-term plan for the automotive industry. The government’s target is for Stellantis to increase its annual production in Italy to one million vehicles, up from approximately 750,000 the previous year. However, the automaker is seeking support measures, including reduced energy costs and incentives for EV sales.

Government’s proposed incentive scheme

According to media reports the Italian government is preparing to unveil a new incentive scheme on February 1, worth over 900 million euros (USD 975 million) for the current year. Tavares pointed out that Italy’s spending on EV incentives lags behind other European countries, expressing concern about the impact on manufacturing products in Italy.

Stellantis’ global ambitions in commercial vehicles

Carlos Tavares outlined Stellantis’ ambitious plan to become the global leader in the commercial vehicle (LCV) market by 2030. This entails a strategic offensive in North America and leveraging opportunities in Asia. With a market share exceeding 30% in 2023, Stellantis leads the LCV market in Europe and stands among the top three global manufacturers alongside Ford and Toyota.

Commercial vehicle sales performance

Stellantis achieved significant success in the LCV market, selling 1.8 million units globally in the previous year under brands such as Fiat, Peugeot, Citroen, Opel, Vauxhall, and Ram. This marked an increase from 1.6 million units in 2022, solidifying its position as a major player in the commercial vehicle segment.

The road ahead for Stellantis and Italy

Tavares conveyed Stellantis’ readiness to compete and navigate the challenges, emphasizing the consequences of intense competition. The plea for government support reflects the delicate balance between industry goals, economic policies, and the broader landscape of the evolving automotive sector in Italy. As the government prepares to unveil its incentive scheme, the outcome will likely shape the trajectory of Stellantis’ production and its role in the global automotive market.