The surprise resignation of Stellantis boss Carlos Tavares didn’t just surprise the automaker’s workforce. The Italian government is now demanding an explanation. Fiat heir John Elkann should appear before parliament, but has not wanted to do so in the past.
The governing parties demand that Chairman of the Board of Directors, John Elkann, report to parliament on the future prospects of the Stellantis factories in Italy. “The transition to new management requires responsibility, securing jobs and expanding skills. That is why it is all the more important that John Elkann comes to parliament as soon as possible to report on the future of Stellantis,” said Fratelli d’Italia faction leader Tommaso Foti.
The League around Deputy Prime Minister Matteo Salvini criticized Tavares’ leadership at Stellantis. “We are curious to see how much money Tavares will collect as a bonus for his disastrous leadership at Stellantis,” Lega said. Even the strongest unions expressed concern about Stellantis’ sudden turnaround.
The relationship was strained for months
Relations between the Italian government and Stellantis have been tense for months. Italian Prime Minister Giorgia Meloni recently accused Elkann of disrespecting parliament. Elkann was widely criticized in October for his decision not to report to parliament in Rome on his companies’ plans to produce cars in Italy.
The Fiat heir did not respond to the call from the Industrial Commission of the Chamber of Deputies, which had asked him to speak to the parliamentary chambers in Rome about the future Stellantis strategy in Italy after rumors circulated about possible factory closures. This resulted in a lot of criticism, including from the Prime Minister.
The parties called Elkann’s decision not to appear before parliament ‘disrespectful’. Although the entrepreneur expressed his willingness to have an “open and respectful dialogue” with the Italian institutions, he emphasized that he had no news to report for the time being and that he was already in discussions with the Ministry of Industry in Rome.
Tens of thousands of jobs are at risk
According to trade unions, around 70,000 jobs in Italy are at risk due to the end of the use of combustion engines in new cars from 2035. Italy’s car industry, which is still largely based on traditional combustion engine technology, offers direct or indirectly employs more than 270,000 people and generates more than 5 percent of Italy’s gross domestic product (GDP), according to trade association Anfia.
According to the information, sales of fully electric cars in Italy fell by 27 percent last year and only accounted for 3.7 percent of total new registrations.
Is the industry’s next giant on the wane?
The unions estimate that without countermeasures, at least 12,000 jobs would be at risk in Stellantis factories alone, and as many, if not more, in the factories that produce parts. Meloni’s government is pushing for a plan to increase car production in Italy to one million units per year.
The car company Stellantis was created in January 2021 from the merger of Fiat Chrysler and the French PSA Group. It includes brands such as Opel, Peugeot, Fiat and Alfa Romeo. In Italy, the group employs around 43,000 people – up from more than 51,000 before the merger in 2021.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
