Conflict between Stellantis and the Italian government puts the future of the Jeep and Fiat brands in Europe in question. Know more!
Stellantis, the company responsible for the Jeep and Fiat brands, faces a turbulent moment given the possible agreement between the Italian government and Chinese companies to production in Europe. Stellantis' refusal to increase production in Italy led the government to consider entry of the Chinese BYD and Chery in the European market, causing concern in the company, according to the Garagem 360 website.
The Italian government seeks to increase vehicle production in the country, pressuring Stellantis to expand its production to 1 million vehicles, instead of the current 750 thousand. Faced with Stellantis' refusal, the government began negotiating with Chinese companies, worrying the automaker.
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Possibility of closing factories in Europe
Carlos Tavares, CEO of Stellantis, threatened close factories in Italy if Chinese production is authorized. He warned that the entry of the Chinese in Europe could result in a reduction in Stellantis' market share, even with efforts to increase productivity.
Rumors about the possible departure of Stellantis from Italy emerged, raising criticism in the country. Tavares stated that they are false news and that the company is investing more than 5 billion euros in the country, with plans to launch 15 new models and build a battery gigafactory.
Job cuts and possible strike in Europe
Despite the investments, Stellantis plans to cut more than 3.700 jobs in Europe, which generated concerns and strike warnings from the metalworkers union.
Stellantis is not the only company to question Chinese companies' entry into Europe. Renault's CEO proposed a plan to protect Europe against what he called “Chin's EV attacka“, showing the concern of the European automotive industry with Chinese competition.
