Italy has $6.5 bn available to support auto industry, unions say

Italy has $6.5 bn available to support auto industry, unions say

Autmotive News Europe — 2023-12-07

Automotive Industry

Italy has about €6 bn ($6.5 bn) still available to support its automotive industry, trade unions said on Wednesday after a meeting with Industry Minister Adolfo Urso and automaker Stellantis.

The money is part of over €8 bn set aside last year for the auto sector by the previous Italian government of Mario Draghi, the former European Central Bank president, to last until 2030.

Urso said in a separate statement that any automotive subsidies would have to support purchases of vehicles actually produced in Italy and that such schemes could also be revised to help attract new automakers to the country.

He did not comment on the funding available to support the sector.

Stellantis, Italy's sole major auto manufacturer, and unions are in talks with Prime Minister Giorgia Meloni's rightist government over a long-term plan for the national automotive industry.

Those talks include ways for the group to boost its production in the country to 1 m vehicles, a target not attained since 2017.

Stellantis said in a separate statement that all parties "have the common goal of creating the conditions to support the production of vehicles in Italy in the coming years of difficult transition," with the "ambition" of hitting the one-million target by 2030.

Urso said the target was for "at least" 1 m vehicles.

The UILM trade union said that Stellantis was expected to produce a total of between 700,000 and 800,000 vehicles in Italy this year, so the 1 m output target was "within reach."

Stellantis reiterated that reaching the target depended on several factors, such as the cancellation of the EU's tougher Euro 7 emission standards, subsidies for new car purchases and cost reductions for the industry, including on energy.

Talks in Rome also involve auto parts suppliers and regional authorities.