Italian Government Upset Alfa Romeo ‘Milano’ Will Be Built in Poland

Matt Posky
by Matt Posky

The Italian Minister for Business has criticized Stellantis for manufacturing the Alfa Romeo Milano outside of the country, suggesting that the automaker had likely violated the law.


Assembly is slated to take place at the Tychy plant in Poland. According to Reuters, that makes it the very first Alfa Romeo model to be produced entirely outside of Italy.


While I cannot pretend to understand Italian law, the nation has a long history of interesting sports cars and has more than earned the right of being proud of its automotive heritage. However, the country also allowed Fiat Chrysler Automobiles to be sold to the French, resulting in Stellantis. As an American, I’m not exactly thrilled what the brand has in store for Dodge and Chrysler either. But those marquees have changed hands so many times that it doesn’t make much sense for me to get more than a little upset — and it certainly isn’t going to change anything.


Then again, the vehicle in question is likewise being marketed as overtly Italian. Stellantis even opted to name the vehicle after the city where Alfa Romeo was founded in 1910. That’d be like Ford or General Motors producing something called “The Detroit” and then having it built somewhere in Mexico.


"A car called Milano cannot be produced in Poland. This is forbidden by Italian law," Italian Minister for Business and Made in Italy Adolfo Urso explained to the media on Thursday, citing legislation from 2003 that targets "Italian sounding" products that falsely claim to be Italian.


"This law stipulates that you cannot give indications that mislead consumers. So a car called Milano must be produced in Italy. Otherwise, it gives a misleading indication which is not allowed under Italian law," he said.


From Reuters:


Urso's complaint is the latest in a war of words between Prime Minister Giorgia Meloni's nationalist government and the Franco-Italian automaker, as the two sides hold talks on a plan to boost domestic auto production to one million units.
The law mentioned by Urso says it is illegal to present a foreign-made product as coming from Italy. Typically, it has been invoked against food products, for example U.S.-made "parmesan" cheese resembling Italy's "parmigiano".


Stellantis has made no comment in regard to the Italian government’s criticisms. But CEO Carlos Tavares had previously stated that building the Milano in Poland would lower production costs and allow it to sell it at a lower price. Estimated to start at the U.S. equivalent of $32,000 in its cheapest format (which is honestly kind of pricey for such a small vehicle), an Italian-made version was estimated to retail closer to $42,500.


[Image: Alfa Romeo]


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Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Ilo65710513 Ilo65710513 on Apr 13, 2024

    A vehicle named Milano can indeed be built in Poland (as could a "Detroit" or a "Paris", etc). Was the Yukon built in Yellowknife, Yukon? No. Was the Malibu produced in Malibu? No. If it can be produced at a large discount in Poland given lower labour and land costs, I support it. Vehicle production today includes such a high degree of robotics, the location is irrelevant.

  • Scott Scott on Apr 14, 2024

    Shouldn't the The Italian Minister for Business be criticizing The Milano for being too ugly to be Italian?


    Better use of resources doing that....

  • NJRide So if GM was serious about selling this why no updates for so long? Or make something truly unique instead of something that looked like a downmarket Altima?
  • Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
  • Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?
  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
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