Italian Government Threatens to Pull Public Funds if Stellantis Doesn't Follow Through On Planned Battery Factory

by Chris Teague

Published: August 23rd, 2024

italian government threatens to pull public funds if stellantis doesn t follow

The Italian government has given Stellantis hundreds of millions of dollars to build a battery plant, but the country may pull that funding if the automaker doesn’t firmly commit to the project. It warned that it would move funds elsewhere if the company isn’t willing or able to follow through on its promise to build the facility, but the joint venture between Stellantis and others delayed the factory and others earlier this year.

Italian industry minister Adolfo Urso said, “Stellantis must give us a reply, and it must do so shortly. If Stellantis does not give us a positive feedback within hours, we’ll move the funds elsewhere. We can’t afford to lose these funds because Stellantis is not sticking to its commitments. The government did its part, the company did not.”

To be fair, the Stellantis partnership group hasn’t killed the project. Its announcement earlier this year stated that it would revise its plans for sites in Italy and Germany “to introduce a new technology for the production of cells and modules, to be in line with the evolution of the market.”

Italy has been at odds with Stellantis for a while. Prime Minister Giorgia Meloni has pushed the automaker to focus more on the Italian market, forcing it to remove the country’s flag from vehicles made in Morocco and heavily criticizing the merger between France’s PSA and Fiat-Chrysler, which formed Stellantis back in 2021.

[Images: Stellantis]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#Stellantis #Italy #giorgiameloni

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

More by Chris Teague

Comments

Join the conversation

5 of 11 comments

ToolGuy on Aug 23, 2024
When I need batteries I go to the store and buy batteries. (I have a friend who orders them online, but personally I get very nervous with internet payment schemes, and also phones without dials.) Anyway, the point is, I don't make my own batteries, I purchase them. Why would a car company build a battery factory? Is Stellantis a car company or a battery manufacturer? Do they know? Do you know? (I know I don't know.) There are good honest hardworking Americans (and Italians) going to work every day to make batteries, and they never asked Stellantis the car company to come and take their jobs away, did they? Hopefully the Harris-Walz-Emhoff-Walz Administration can fix this situation. Otherwise, what is next -- airplane companies building rockets?? Back in my day, people stayed in their lane (and when they didn't we went to Europe and showed them where things stand).

Like Reply
- See 1 previous
- Dartdude on Aug 24, 2024
  Well in the beginning not all car makers made their own engines and bodies. Probably the reason they're making their own batteries, one they don't have to worry about shortages like semi-conductors. Two to fit they're platforms and range. Stellantis was ill conceived. Just like when Bob Eaton sold out Chrysler with the Daimler deal and Obama selling out Chrysler to Fiat. FCA did the same deal with PSA and all the deals screwed Chrysler. PSA knew before going with FCA they would be stuck with the high Italian labor costs and UAW. Stellantis needs to spin off some of their brands. Spin off Chrysler with Dodge and Ram. Maybe Maserati and Alfa. If they're intend to sell Leapmotors products in Europe maybe they shut down Lancia, Fiat and Vauxhall and DS.
  
  Like
- VoGhost on Aug 26, 2024
  You want industrial policy modeled on your buying habits?
  
  Like
EBFlex on Aug 26, 2024
Proof all governments are awful. “Build what we tell you or we turn off the tap”

Like Reply
- SCE to AUX on Aug 26, 2024
  It Stellantis' fault for accepting government money to begin with, starting in France (6% ownership), and soon in Italy. The check writer wants a return on investment. Accept money from the Man, and the Man calls the shots.
  
  Like

Recent Comments

Tassos Ask me if I care for the idiotic vehicles less than 10% of whose owners use as INTENDED.
Brandon The 2024 Mercedes-Benz E 350 4Matic looks like a compelling addition to the luxury sedan market. From the drive notes, it’s clear that Mercedes-Benz has maintained its commitment to blending performance with comfort. The handling and acceleration seem impressive, reflecting Mercedes’ signature blend of power and smoothness.
Jmanb52 In this case clearly a driver responsbile for the accident. Lawyer just trying to add confusion to jude and or jury to think about it. I was on a jury once for an auto accident and one of the attorneys tried a few stunts to shift blame. Same thing is happening here. The companies pushing autonamous want to deal with fleet markets like the autonamous taxi companies rather than individual consumers. In my opinion I think they belvie that would be more predictable sales. Car gets to xyz milage time to replace. In my opinion they could never sell a full autonamous car to an individual because of a back and forth legal battles between owner and maker when there is a crash. They need to foget about all these take over driver aids. It is just causing more issues than it could prevent.
Jmanb52 Short answer is NO! It has been a tread for manufactures to basicaly glue a tablet to an area of the dash and call it an infotament system. However there is not one of us on here that doesn't ahve a smart phone or tablet. With the android auto, and the Apple Carplay and bluetooth that conencts car spekers and mic to our headset, do we even need an Infotament system or just bluetooth connection to use hands free mic and spearkers or wired connection to USB port for connection to spearkers / mic and charge the phone. So maybe the QOTD should be do manufactures even need to provide an infotanement system or should they just provide an in dash holder for a tablet or smartphone?
Jmanb52 In the past year I did some more research on EVs. I already knew for years they were heavier than a ICE car of the same model / class. Like the F150 lightning can be 1000 LBS heavier than its ICE counterpart. In the last year I read more on the size of breaks, tires and other items that take more resrouces to create and polute more in their wear. This was another nail in my corporate EV caufin. I already didn't have much care for them due to my height (over 6 feet) and they all have a bad desgin, over dependency on gimics, over computerized driving experience. If I ever did get one it would be a low range in town only type vehicle that I would convert an older car. There is no manufacture making EVs that is worth a penny of my money.