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]

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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.

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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).

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- 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.
  
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- VoGhost on Aug 26, 2024
  You want industrial policy modeled on your buying habits?
  
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EBFlex on Aug 26, 2024
Proof all governments are awful. “Build what we tell you or we turn off the tap”

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- 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.
  
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