Here’s how and why Stellantis snubs Italy. Reports
What emerges from an S&P Global report on Stellantis
John Elkann denies it, Carlo Tavares meanwhile keeps going. But that Stellantis prefers low-cost countries, as Start has underlined for a long time (not least with the production of the Fiat Panda in Serbia, the 600 in Poland and the Topolino in Morocco) is undeniable. To such an extent that it is no longer just Italians who say it.
STELLANTIS LOOKS AT LOW-COST COUNTRIES
According to a report by S&P Global cited by Milano Finanza , in fact, in 2024 Italian production is destined to decline further in volumes by 12%. All this while the government is asking to return to the million cars produced and France in the same period will see a 2% increase in cars produced in its factories, with volumes destined to stabilize around 730 thousand units in 2025.
According to data from December 2023, car production in our country fell below 500 thousand units in 2022, more precisely 473,194 (source: International Organization of Motor Vehicle Manufacturers). Italy thus slipped to eighth position in Europe behind Germany (3,480,357), Spain, the Czech Republic, France, Slovakia, the United Kingdom and Romania.
IF ROME CRYES, DOESN'T PARIS LAUGH?
As Les Echos recently wrote in an in-depth report, it is not so much an Italian-French derby that is taking place (this would still need to be questioned, given that the data confirms that Italian desertification has no equal on French soil), but rather a geographical reorganization that is pushing Stellantis to produce massively in low-cost countries.
Not too far from home, if we consider that in 2023 from the Iberian Peninsula (historically a Mediterranean garage, without boasting any real indigenous brand, but chosen during the second half of the twentieth century by the French and Germans for intensive production given the competitive costs ) over a million vehicles arrived from the three Stellantis factories.
And then there are both the northern shore of the Mediterranean and the countries of Eastern Europe. A few months ago Stellantis wanted to respond to those who criticize its Francocentric conduct by dusting off two models that have made automotive history in Italy. Very good. Long live Made in Italy which even gives its name to a ministry here. There is only one detail: the new Fiats will be produced in Morocco and Poland .
And from this year Stellantis will produce in the Kragujevac plant, in Serbia, where the Fiat 500L, the Panda, once the pride of Pomigliano, is currently produced. The investment amounts to 190 million euros, with Serbia participating with 48 million euros.
The electric Fiat 500 will speak Algerian and will have its cradle in the Tafraoui-Orano plant built hastily over the last twelve months. By 2026, the plant will create almost 2,000 new jobs on site, achieve a localization rate of more than 30%, a production capacity of 90,000 vehicles per year and will produce four Fiat models, the Group said .
Coming to the numbers reported today by MF , in 2023 Morocco and Turkey produced almost 400 thousand cars, i.e. 100 thousand more than in 2020. According to S&P, Stellantis has pushed the production of its three sites Eastern Europe to increase by 12% in 2023 with the aim of reaching and exceeding the rate of fire of the Italian and French factories already by 2025, with a growth of 38% up to almost 800 thousand units.
STELLANTIS MEANWHILE IS ARMORED
This is a situation that should perhaps push Rome and Paris into an alliance to avoid, while they still have time, Stellantis moving to low-cost countries. It won't be easy, because despite certain astonishing political utterances, the Group shielded itself some time ago, taking refuge in the Netherlands, whose corporate rules shield the entities based there from hostile takeovers and, therefore, from annoying government interference.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ecco-come-e-perche-stellantis-snobba-litalia-report/ on Wed, 07 Feb 2024 11:34:35 +0000.