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2025 | OriginalPaper | Chapter

8. The Imposed Path for the Italian Automotive System

Authors : Matteo Gaddi, Nadia Garbellini, Francesco Garibaldo

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

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Abstract

The Italian automotive industry is at a critical juncture, grappling with a significant decline in passenger car production and the strategic shifts of Stellantis, the result of the merger between Fiat Chrysler Automotive (FCA) and PSA. The chapter delves into the consequences of these changes, highlighting the increasing dependence of Italian automotive suppliers on foreign markets and the lack of a coherent industrial policy. The analysis reveals how the Italian automotive sector has been relegated to a subordinate position within European value chains, with profound implications for employment and industrial competitiveness. The chapter also examines the strategic decisions of Stellantis, which prioritise cost reduction and profitability over domestic production, further exacerbating the challenges faced by Italian suppliers. The lack of effective industrial policy in Italy is a recurring theme, with successive governments failing to implement measures that could support the transition towards electrification and strengthen the domestic supply chain. The chapter concludes by exploring the potential future scenarios for the Italian automotive industry, emphasising the urgent need for strategic intervention to prevent further decline and ensure a sustainable future for the sector.
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previous chapter Is Electrification an Opportunity or a Threat? The French Automotive Industry at the Crossroads
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Footnotes
1
Our elaborations on ISTAT and Eurostat data.
 
2
The main Italian social shock absorber is Cassa Integrazione Guadagni (CIG), an instrument aimed at supplementing workers’ income in the presence of events leading to a temporary suspension of employment. The worker suspended from work is only entitled to wage compensation paid by INPS (the Italian National Social Security Institute). As of 1 January 2024, INPS has set the maximum wage compensation receivable by workers at EUR 1392.89 gross—514 EUR less than the basic wage negotiated in June 2024 for a third level Stellantis worker.
 
3
Zukunftspaket der Bundesregierung, June 2020.
 
4
Gobierno de Espagna, Plan del impulso de la cadena de valor de la industria de la automocion, June 2020.
 
5
Gouvernment France, Plan de soutien à l'automobile—pour une industrie vert et compétitive, May 2020.
 
6
The Next Generation EU was approved by the Meeting of the European Council (17–21 July 2020) to introduce exceptional measures to support the recovery and resilience of member states’ economies in response to the COVID crisis.
 
7
Development of electric recharging infrastructure, Investment 4.3 in Mission 2, Component 2.
 
8
Developing international industrial and research and development leadership in the main transition chains, Investment 5 in Mission 2, Component 2.
 
9
Directorate decree of 10 October 2022, Ministry of Economic Development
 
10
French Government, Plan de soutien à l’automobile: pour une industrie verte et compétitive; May 2020.
 
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Metadata
Title
The Imposed Path for the Italian Automotive System
Authors
Matteo Gaddi
Nadia Garbellini
Francesco Garibaldo
Copyright Year
2025
Book
Global Shifts in the Automotive Sector

Print ISBN: 978-3-031-80640-7

Electronic ISBN: 978-3-031-80641-4

Copyright Year: 2025

DOI
https://doi.org/10.1007/978-3-031-80641-4_8

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