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Stellantis will benefit from the reallocation of NRRP funds for car production in Italy, as Italian Minister Urso aims for a pact with the unions by mid-August

July 26, 2023


Abstract : The Ministry of Enterprises and Made in Italy is holding a series of discussions on the future of the automotive sector. Part of the funds could come from REPowerEU, as the goal is to produce 1 million cars per year in Italy.

MILAN, July 24 (Class Editori) — The revitalization of the automotive sector and the future of Stellantis production in the Italian plants will also come through the reshaping of the National Recovery and Resilience Plan (NRRP).

REPowerEU funds for "Transition 5.0" plan

"It is our intention to also include the resources that may come from the revision of the NRRP chapters of REPowerEU, which should take place by August 30," the Minister of Enterprises and Made in Italy Adolfo Urso explained at the end of the meeting with the unions on Stellantis.

Amending the NRRP to include the REPowerEU chapter will therefore be one of the ways to raise funds. Specifically, the aim is to allocate part of the remodulation to business incentives as part of the "Transition 5.0" plan, with the aim of allocating a total of around 4 billion euros to this chapter.

The goal is to produce 1 million cars per year in Italy

According to the unions themselves, the company did not attend the meeting. Instead, Stellantis CEO Carlos Tavares had met with Urso on July 10 to discuss the future of the industry. The two agreed to reach at a transitional agreement with the ultimate goal of returning to production of 1 million cars a year in Italy.

"We need to align Italian industrial policy with European policy and with the resources that can be put in place. This applies to the automotive dossier, to the Italian automotive industry, but also to other sectors," the Minister added.

Urso therefore wants to reach a systemic agreement "to reverse the course," which includes the induced activity and is capable of accompanying the ecological transition also of those who produce components for Stellantis as well as for other foreign car manufacturers. The timetable aims to reach a pact by mid-August.

The unions' proposals

"The confrontation that began today with the Government must become a negotiation also with Stellantis, in order to reach a framework agreement on the industrial plan, with precise commitments on investments, employment guarantees, plants, R&D for the relaunch of the sector, starting with components," Maurizio Landini, General Secretary of the Italian General Confederation of Labor (CGIL), and Michele De Palma, General Secretary of the Italian Federation of Metalworkers (FIOM)-CGIL, explained in a joint statement.

"Of course we ask for a discussion with Stellantis on the industrial plan, on the level of employment, on the models that will be produced in Italy and, of course, on the factories and the induced activity. We ask the Government to understand how many resources it is investing, for what and under what conditions," Pierpaolo Bombardieri, General Secretary of the Italian Labor Union (UIL) said at the end of the confrontation.

For Luigi Sbarra, General Secretary of the Italian Workers’ Trade Union Confederation (CISL), the resources available "must be linked to specific conditions, first and foremost an increase in car production". (All rights reserved)

(Source:Class Editori)

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Keyword: auto industry Stellantis

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