The refusal of the chairman of the board of directors of Stellantis, John Elkann, to come and speak before a committee of the Italian Chamber of Deputies has caused an outcry in the country.
The refusal of John Elkann, chairman of the board of directors of Stellantis, to respond to a summons from the Italian Chamber of Deputies, caused an outcry in Italy.
This gesture was perceived as an affront by several political leadersboth from the right and the left, at a time when the government of Giorgia Meloni accuses Stellantis of lacking investment in the country.
An indignant reaction from the Italian political spectrum
The absence of John Elkann before the House Productive Activities Committee was immediately criticized. Matteo Salvini, Deputy Prime Minister and head of the League, denounced this absence on “shameful insult to institutions”while Elly Schlein, head of the Democratic Party, considered that it was “justified to denounce the behavior” of the president of the manufacturer.
In a context where relations between Stellantis and the Italian government are already tense, this decision by John Elkann is seen as a new escalation. Italian authorities accuse Stellantis of neglecting Italy in terms of investments and of relocating production to countries with more advantageous labor costs, thus weakening the Italian automobile industry.
John Elkann’s rationale and Stellantis’ response
In a response sent to the commission, John Elkann justified his absence by the recent intervention of Carlos Tavares, general manager of Stellantis, before the same commission on October 11. According to him, the hearing of Carlos Tavares made it possible to address in detail the challenges facing the company in Italy, notably the high price of energy which increases production costs. John Elkann thus estimated that he “n’y a[vait] had no new developments” requiring his presence, saying that discussions were continuing with the authorities within a dedicated working group.
Carlos Tavares, during his speech, called on Italian elected officials to support automobile production through subsidies and incentives in order to make Stellantis vehicles accessibleciting the importance of public support in the face of high production costs.
A debate on the future of automobile production in Italy
Giorgia Meloni’s government sets ambitious targets for Stellantis, demanding that the group achieve the production of one million vehicles per year in Italy by 2030compared to 751,000 produced in 2023 and undoubtedly even much fewer in 2024 with the partial closure of certain production lines, including that of the electric Fiat 500. However, Stellantis tempers these expectations, recalling that production depends largely on market demand.
The challenges Stellantis faces in Italy are also linked to the budget cuts planned by the Italian government. Indeed, Rome plans to reduce subsidies for the ecological transition of the automotive sector by 4.6 billion euros between 2025 and 2030. Such a measure could weaken Stellantis’ ability to maintain high production levels and compromise the achievement objectives set by the Italian government.
A drop in numbers and an uncertain future for the sector
Since the creation of Stellantis in 2021, following the merger between Peugeot-Citroën and Fiat Chrysler, the group has reduced its workforce in Italy by more than 10,000 positionsreducing the number of employees to around 40,000. Italian unions fear that this reduction in the workforce will continue, while forecasts for 2024 estimate production of less than 500,000 vehicleswell below the objectives set by Rome.
This situation worries not only the unions, but also Italian elected officials, who see the preservation of jobs and automobile production as a priority for the country.
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