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italy issues an ultimatum to stellantis, may transfer funds to chery

2024-08-28

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the italian government recently accused stellantis of not prioritizing the italian region in its plans as expected; its main focus is reportedly on stellantis' plan to build several battery factories in europe, including one in termoli, italy, which is expected to be operational in 2026. italian manufacturing minister adolfo urso has issued an ultimatum to stellantis: the group needs to respond positively, otherwise they will not receive the promised public subsidies.

it is reported that stellantis is the main investor in acc, which is a joint venture that also includes mercedes-benz and totalenergies. it has pledged to build three battery super factories in europe in the next few years. they are already in operation in douvrin, france; in kaiserslautern (germany); and in termoli (italy), with a total cost of 7 billion euros.

as global electric vehicle sales slowed, stellantis also changed its group strategy, and projects in the german and italian factories were paralyzed. at the same time, italian manufacturing minister adolfo urso also said: "if the stellantis group does not respond, pnrr (national recovery and resilience plan) resources will be allocated to others." it is understood that the total investment in the termoli plant will reach 2 billion euros, of which 370 million euros will come from the italian government through eu funds. at the same time, chery, byd or dongfeng group will also negotiate with giorgia meloni's executives, so the funds originally used for stellantis may be transferred to a number of chinese independent brands.