Stellantis, here are threats, requests and promises to the government
Tavares reassures: "The interest of the company is the interest of Italy and vice versa", but then the number 1 of Stellantis returns to cash in: "The Italian Government should help consumers because electric cars cost more" and threatens the executive in negotiations with the Chinese: "Weakening us will not help the country." Details of the interview given to Il Sole 24 Ore
The one between Stellantis and the government began as a game of chess, then continued into a game of poker, with bluffs and provocations, but risks ending up in a boxing match. The automotive group now with a strong international vocation has started with Carlos Tavares a disengagement from our country which is now increasingly obvious and difficult to hide. To stay, it asks and demands help, especially with reference to the energy transition which, it is equally well known, has never gone down well with the Portuguese CEO of the group chaired by John Elkann . The government for its part has set the bar at 1 million three hundred thousand cars: these are the ones that must be produced in Italy to ensure that the supply chain holds up and does not lose any more pieces.
WHILE STELLANTIS AND THE GOVERNMENT FIGHT THE SUPPLY CHAIN
Yes, because an undergrowth of suppliers has developed around Fiat and its historic brands which today, with constant relocation to other countries (such as the Algerian 500 , the Serbian Panda , the Moroccan Topolino and the Polish 600 ) is struggling to move forward. The last to have definitively lowered the shutters was the historic Proma , the components company that supplied Maserati. Therefore, for the government, the employment issue goes beyond the perimeter of the large Stellantis centers at risk of divestment.
At first, in the negotiations that began last August, the executive asked Tavares to return above the one million cars produced by the Italian factories. Only more requests for help arrived, drawn like sabers. And then the government started playing another game, or rather, other games, which did not just concern Stellantis.
THE EXECUTIVE AIMS AT TESLA AND CHINA
Flirting with foreign brands, from the Texan Tesla of the South African Elon Musk to the Chinese Byd and Chery (the Asian brands spoken to by the executive would be three) which obviously annoyed Tavares. Even if at the moment they all seem like summer flirtations , because no one – not even Chery which seemed to have already independently decided to come and produce cars in our country – has made anything official yet. The sharp drop in demand for electric cars has its bearing on the matter, but probably the desperation with which the executive is groping for bidders is leading the actors involved to wait to obtain the best conditions.
THE NEW THREATS OF STELLANTIS N.1 TO THE GOVERNMENT
The situation, however, makes Tavares, also known as "the Mourinho of the automotive industry", particularly irritable, given that like his compatriot coach, the CEO is also known for his lack of diplomacy and lack of tact. From the columns of Il Sole 24 Ore – certainly not a friendly newspaper, which has recently lashed out at the automotive group on more than one occasion – the CEO of Stellantis comments on the government's latest moves thus: "I tell you this: we are not afraid of the Chinese challenge , but weakening Stellantis in Italy would not help Italy."
WHAT TAVARES ASKS OF THE EXECUTIVE TO PRODUCE IN ITALY
If it's not a threat, not even that veiled, we're close. So the number 1 of Stellantis returns to cash in on the government: "The Italian government should help Italian consumers because electric cars cost more than internal combustion ones and the Italian market, due to its specificity, needs to be helped more than others" .
A litany that the Portuguese has been repeating for a long time. At the end of last July, after negotiations had just begun, the manufacturer's note written on the sidelines of the first meeting at Mimit included these requests: "incentives to maintain Italian competitiveness such as the cost of energy supply and the cost of transformation".
“Overall – details Tavares al Sole – in Italy we are at 63% of our production capacity and we would be ready to double the production of the electric 500 in Turin. But Italy has a problem, which can be found in the structure of its market: it has the largest share of the B segment (small cars, ed.) when compared with that of other European countries. This tells us that the issue of accessibility is very important for Italian families."
TAVARES: “EXCELLENT RELATIONSHIPS WITH THE UNIONS” (BUT THEY WILL STRIKE IN MIRAFIORI)
Punctually, however, the threat was followed by a reassurance: "We will continue to have a very intense design activity. All the most beautiful models of Alfa Romeo, Fiat, Lancia and Abarth are born in Mirafiori, not to mention Maserati. We will continue like this." Tavares goes even further, saying: “The dialogue we have with the unions and our staff in Italy is excellent.”
Maybe, but the CEO of Stellantis forgets that the industrial plan he signed is the basis of the Mirafiori unrest. Furthermore, it is the cause of the first joint strike in fifteen years called by Fim, Fiom, Uilm, Fismic, Uglm and the Managers Association on 12 April, extended to the entire supply chain.
MIRAFIORI PRODUCTION AT HISTORIC LOW
In fact, the blue collar workers did not like the decision to extend the redundancy fund for employees working on the 500 Bev and Maserati models from 2 to 20 April. A total of 2240 workers were involved. The company had already placed Mirafiori workers on Cigo for a month in the period between 2023 and 2024, for three weeks from 12 February to 3 March and then had extended the benefit until 30 March. Finally yet another postponement to April 20th. The fear is that of ending up like the Maserati factory in Grugliasco which closed its doors in the second half of last December. “Italy is a pillar with Fiat.” says Tavares to the Sun. But if what's going on between Stellantis and the Government is a poker game, it's difficult to give him credit.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/stellantis-ecco-minacce-richieste-e-promesse-al-governo/ on Tue, 19 Mar 2024 09:15:32 +0000.