The relationship between Stellantis and the government is inseparable to the socio-economic fabric of Italy. A relationship of hate and love animated by a great river of money that has flowed uninterruptedly since even before the birth of the Republic. A series of incentives ranging from technology aid to job maintenance aid. Some information: from 2016 to 2024, Stellantis, formerly FCA, received around 100 million euros in state aid, including funds intended for the technological updating of factories and support for compensation for worker dismissals; from 2014 to 2020 it raised around 446 million euros, of which 263 million were paid by the company itself. Furthermore, during the pandemic, the group benefited from a state guarantee of 6.8 billion euros, pledging to maintain and reinforce investments in Italy. If we look at the long term, from 1970 to today, the various governments deposited well over 220 billion euros in the coffers of what was the Italian Automobile Factory in Turin.
This is a clear sign of how vital the automotive sector is to the country. Therefore, the reality is that Italy cannot live without Stellantis. To better understand, the automotive sector represents more than 5% of Italian GDP and employs around 1.2 million people, considering related industries. Approximately three-quarters of the companies in the sector have something to do with Stellantis, in a more or less direct and more or less exclusive way. Its position is so central that no government, starting from the current one, can ignore it. It is no coincidence that the Minister of Business and Made in Italy, Adolfo Urso, declared that he is confident that Stellantis can reverse the sector’s decline, also contributing to the recovery of the European automotive industry, in line with the ecological transition strategy appointed by the Italian government. However, there is no shortage of challenges. Internally, Stellantis faces difficulties related to the delay in launching new models, running the risk of losing market share in crucial segments. Issues related to technological platforms and software contributed to a misalignment with growth expectations. Furthermore, the management of relationships with suppliers, dealers, unions and governments has highlighted internal conflicts that risk undermining trust in the group.
Stellantis CFO Doug Ostermann recognized the need to rebuild trust with all stakeholders, which will take time but is essential to the company’s future. «There have been disagreements between Tavares and the management in the last 3-6 months about the group’s priorities and the actions to be taken in the next 15-16 months until the end of his mandate» confessed Ostermann. Meanwhile, Carlos Tavares left, leaving behind an industrial desertification that has no equal in Italy: sales of Fiat and other Italian brands are falling, Maserati disappeared from the radar and factories are constantly in layoff, from North to South. Luxury car sales in China and the United States, as well as demand for electric vehicles in Europe, are strongly affecting production performance. 97% of production at the Mirafiori factory is represented by the electric Fiat 500 and difficulties in the electric mobility sector are slowing growth. Over the last year, car production has been interrupted several times, especially at Mirafiori, in Turin, one of Fiat’s symbolic factories, where a long closure for the Christmas holidays was announced at the end of November, from December 18th to 5th. of January. However, it is worth remembering that the group has around a hundred factories spread across the world and around 160 thousand employees. Stellantis’ main shareholder is Exor, the Agnelli-Elkann family holding, with 14.2%. The second shareholder is Peugeot with 7.1%, the third is the French government, through Bpi, with 6.1%. Now we just have to wait for some smoke signals on December 17th, when Stellantis will present itself at the Ministry of Business table.
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
