Alexandre
In a recent speech, the Minister for Enterprise and Made in Italy, Adolfo Urso, highlighted the importance of the Potentially undervalued impact of the merger between Fiat Chrysler Automobiles (FCA) and PSA Groupenow known as Stellantis. This union, which came to fruition four years ago, seems to have left a significant mark on the Italian automotive industry, particularly where domestic production sites are concerned.
Adolfo Urso expressed concern shared with the opposition regarding the impact of the creation of Stellantis. He recalls that, at the time of the merger, the Italian government of the time probably did not fully appreciate the consequences of this operationunlike the French government. The lack of consideration for the impact on employment in the Italian automotive sector is now at the heart of the debate.
The Minister stressed that, following the merger, the Italian plants, once renowned for their quality and production capacity, began to suffer a reduction in capital expenditure by the Group. This reduction in investment has resulted in a difficult situation for the industry, particularly in Italy where, unlike the French sites, the facilities have felt the impact of this strategy.
The direct consequence of this situation is obvious for the sector, and has prompted the current government to enter into discussions with Stellantis. These discussions, though marked by moments of tension, began within the Automotive Industry Round Table before continuing within a more specific framework focused on the Stellantis group, set up last December.
Minister Urso highlighted theThis is why it's so important to exchange ideas with Stellantis, which are crucial to the future of the Italian automotive industry. The next few days could prove decisive, as the government and Stellantis continue to negotiate solutions to support employment and production in Italy's automotive sector.
If only a "de-merger" were possible, before Tavares left a field of ruins... This applies to all the Group's brands.
I couldn't agree more, it's the worst thing that could happen to the European car industry.
I totally agree with you. What a shame for brands like Alfa Romeo and Lancia, which are going to be powered by PSA engine blocks. I've been driving Fiat and Alfa for 25 years because of the pleasantness of their engines. Unfortunately, I think this is my last one!
And to think that in Brazil the 208 has a fiat engine inside the solid firefly and in France a puretech crap in our Fiat alfa lancia, what a shame.
Under Marchionne and then Elkann, the group suffered from a constant lack of investment in Europe, and sales only declined.
No kidding? All that time wasted on the obvious.
To illustrate Alexandre's point:
https://journalauto.com/constructeurs/megafusion-stellantis-le-premier-actionnaire-recadre-carlos-tavares/
https://investir.lesechos.fr/actu-des-valeurs/la-vie-des-actions/stellantis-elkann-sest-entretenu-avec-le-ministre-italien-de-leconomie-2074536
This explains quite a few things, such as Olivier François' seduction operation with the presentation/retail of the Pandina at Pomigliano d'Arco, or the Italian government's announcement of a subsidy for EV purchases (Mirafiori at a standstill for the 500th, and the new Panda soon to be assembled in... Serbia).
It's about time they woke up 😡
To be on the safe side, they need to buy in the same percentage of the capital as the French state, and appease Macron and his clic and Tavares once and for all.
It's time for FCA to regain its autonomy or face certain death!
With production focused on the electric 100%, it's suicide!!! Death programmed, in a grotesque scenario written by our environmentalists in Brussels, our governments who took advantage of a balance of power with industrialists who cheated on unenforceable standards... Diesel gates, fine and you shut up and crash for an ecological turn you didn't want...
Totally agree with you 👍
In France, they say the same thing. No new programs in French factories, while 5 projects are given to Melfi. Poissy will close in the medium term. And French employees are the group's adjustment variable. France is not the majority shareholder, but the AGNELLI family. SO THE STRATEGY COMES FROM THE AGNELLI FAMILY.
Well said! FCA was already a financial set-up to gain margins on the American market!
Stellantis is the logical continuation of the Agnelli financial empire, which has been disinvesting in Italy's historic factories for over 20 years.
It's no better for PSA, which has come close to bankruptcy several times.
It's more Rennes that's threatened in the medium term. Incidentally, no one has mentioned that PSA brands will not be entitled to the STLA Large platform.
All European factories are under threat from Tavares... He is currently relocating to Algeria and India.
As far as the STLA-Large is concerned, in my opinion, PSA has never given itself the means to launch a truly high-end model, with real platforms and real engines. Knowing that on top of that, technically speaking, ex-PSA brings nothing but problems (the PureToc is probably one of the worst engines in world car production today, but their 1.5L HDI that breaks and their plug-in hybrids recalled every week aren't much better), I don't see what right they have to have access to the STLA-Large that comes from FCA's billion-dollar investment in the Giorgio. It can't be a one-way street.
I'm glad to read that. Not because Italian employees are suffering, and this is only the beginning. But because I said so from the start of this merger.....
Sometimes it's a shame to be right.....
And I use my favourite term for this situation: "the work of undermining continues".
Elkan needs to take responsibility and move, fast!!!!
Italy is experiencing what happened in France a few years ago, with rising labor costs, and manufacturers are looking elsewhere, with Spain next on the list. Just as a reminder, annual French car production has fallen from a peak of over 2 million units to around one million at present.
Stellantis is a disaster for Italian brands, for cars that lose their specificity, and for jobs in Italian car factories. From A to Z, it's a failure. If we don't get out, Stellantis will end up wiping out the Italian car industry (except for Ferrari).
Well hello italpassion, I'm horrified by everything I read, my "italpassion" has taken a hit.
Fiat was originally supposed to merge with Renault, but that didn't happen because the French government was involved. In the end, it chose PSA, with the French government in the middle, but the Italian government wanted in, and Mr. Elkann said that Fiat didn't need the Italian government because it could take care of itself, unlike PSA, which needed the French government to recover and avoid bankruptcy. Yes, but this gentleman has forgotten that even if FCA has a majority shareholding, the technical management is French, with the French state behind it... I think that to protect the Italian car industry, we need to put the Italian state in the group to act as a buffer with the French counterpart, to defend Italian interests, because the French should always be wary, because they take everything to their own advantage. In this group, there are more Italian-branded cars, and what brands moreover, whereas on the French side, there's only Peugeot, because Citroën's cars are Citroën-branded Peugeot, and what's more, they have unreliable engines like the 1.2 puretech, and they want to equip Fiat with them. Fiat has always made reliable engines and is a great engine builder, unlike Peugeot.
The French state withdrew from PSA's capital several years ago.
Absolutely not. The French state is still involved through the BCI. The name changes, but it's the same people on the Board of Directors.
Leave stellantis, and make italians pay taxes for foreign cars
I don't see what Tax and foreign cars have to do with it.
The problem was that at the time, Renault was embroiled in its problems with Nissan, so adding a 3rd party wasn't necessarily a good idea. In fact, many suspected that it was Nissan that FCA was most interested in.
On the other hand, the 1.2 Puretech has just swapped its problematic belt for a chain, so the problems should be solved, and you're forgetting one thing: Fiat engines emit more CO2, which is why FCA was obliged to buy CO2 credits from Tesla at the time!
And yes, we must thank Elkan, the so-called heir to Agnelli, who must be turning in his grave!
Elkan doesn't care about Fiat, he's sunk it all to give ever more to shareholders and himself, he's only interested in Ferrari, and he doesn't even respect Enzo by producing over 10,000 Ferraris a year.
Let's hope the Italian government finds a solution
Above all, it was Marchionne who initiated FCA's shift to South and North America.
Fiat Chrysler had completely abandoned the fiat brand and factories before the merger. There was nothing in the drawers, zero investment, which is why fiat was obliged to join forces with a manufacturer that could transfer its technologies. Psa, on the other hand, had completely restored its technical and financial capabilities. They had modern platforms, modern petrol and electric engines, etc...
Modern platforms like the EMP2 from 2013? Modern engines like the PureToc based on the 2006 THP?
The STLA Small and Medium platforms are evolutions of the CMP and EMP2 platforms, for which studies began before the merger.
Otherwise we're talking about the 2007 Fiat 500 still in production!
On the contrary, you clearly (and rightly) state that the STLA-Medium has its origins in the 2013 EMP2. As for the PureToc, it's based on the 1.6L THP, introduced in 2006... even older than the 2007 500...
Reliable, high-performance engines, perhaps?
Italian industry didn't need this merger, Italy needed to do what the Chinese are doing and focus on hydrogen.... And leave behind the other manufacturers who never stop criticizing the Italians, the solution for Italy is to leave Europe!
The truth is that Fiat was dying when PSA (itself on the verge of bankruptcy in 2013, and the French state is no longer involved) arrived, there was nothing in the drawers, and everything had to be recreated, on the other hand, it's clear that the former PSA group will do everything in its power not to relive the 2013 episode, and Tavares doesn't give a damn about the Italian and French states if he wants to survive and make money in dollars or euros, it doesn't matter to him....
The French state is indirectly involved, admittedly the BPI is a shareholder in Stellantis, but who owns the BPI?
The French state is not only still a shareholder in PSA, but also in Forvia.
Certainly not dying, but certainly up to date on hybrid electrics. More Lancia Yosilon were sold in a single country than DS worldwide. The 500 and Panda families are still going strong, and the Tipo family had no problem selling.
The press has portrayed him as a car enthusiast, but Tavares is first and foremost a financier. He destroys the soul of brands for the sake of profitability, and doesn't give a damn about his customers. Take, for example, the puretech engine scandal: hundreds of thousands of customers have lost out.
The Italian government has found a good scapegoat in its French counterpart, especially at election time when we're not on the same political side. Just as a reminder, in 2014 PSA closed its Aulnay plant despite the presence of the French state in PSA's shareholding! Another reminder: the chairman of Stellantis is called John Elkann, and he has an Italian passport. In fact, he represents the Group's largest shareholder: Exor, which is owned by the Agnelli family, again Italians!
The current situation in Italy is mainly due to decisions made by Marchionne, who deliberately under-invested in European production, giving priority to South and North America. The 500 was a hit, but by not renewing the other ranges (Punto, Mito, Giuletta not renewed!), we shouldn't be surprised that customers are deserting us. On the other hand, it seems to me that production has been announced for Italian sites, so the situation is mainly transitory while the production facilities are being brought up to date.
Except that the scapegoat is more like a 5-legged sheep, because there's a world of difference between the initial promises and reality, and Exor finds itself up against the obstacle of PSA and the French government, which are a millstone around its neck, as we saw with Renault.
You're right about Marchionne. He also under-invested to get the accounts back in the black (which he did), but also to rinse out the shareholders. However, what was produced was less problematic than what comes to us from ex-PSA and towards the end he graced us with the Giulia/Stelvio couple (and don't forget the 4C), the 124, the Tipo. But before all that, the 500...
Cost-killing is currently being pushed even further. Coupled with an aberrant rise in prices.
For many, you have a short memory! Where was Alfa, Fiat with Marchione, not to mention the disappearance of Lancia?
I remember plans changing all the time, ranges shrinking to nothing etc.....
The merger is not all doom and gloom, and there's certainly room for improvement, but things do seem to be moving in the right direction!
You can't see everything in black and white, and as for the Puretech engine, I think Peugeot has reacted, so let's not cast aspersions on Tavares or the French state!
If the Italian government has underestimated the merger, it speaks volumes about the intellectual capacity of elected representatives!
Finally, I see that things are moving, we'll see, but don't always denigrate.