Italy government chides Stellantis over Polish-made Alfa Romeo 'Milano'

Carlos Tavares, Stellantis Chief Executive Officer, addresses the audience at the unveiling Alfa Romeo event to introduce their first fully electric car (EV),the Milano in Milan, Italy April 10, 2024. REUTERS/Daniele Mascolo/FILE PHOTO

MILAN (Reuters) – Italy’s industry minister criticised Stellantis on Thursday for producing Alfa Romeo’s first fully electric vehicle (EV) abroad, saying the automaker’s decision violated Italian law.

Stellantis-owned Alfa Romeo, a brand steeped in Italian automotive history, unveiled on Wednesday its new Milano small SUV, named after the iconic northern Italian city of Milan, where Alfa Romeo was founded in 1910.

The car is being built at the Tychy plant in Poland, and is the first Alfa Romeo model entirely produced outside Italy.

“A car called Milano cannot be produced in Poland. This is forbidden by Italian law,” Adolfo Urso said in Turin, referring to 2003 legislation that targets “Italian sounding” products that falsely claim to be Italian.

FILE PHOTO: Stellantis premium brand Alfa Romeo reveals the Milano, its first fully electric car (EV), during an event in Milan, Italy April 10, 2024. REUTERS/Daniele Mascolo/File Photo

“This law stipulates that you cannot give indications that mislead consumers. So a car called Milano must be produced in Italy. Otherwise, it gives a misleading indication which is not allowed under Italian law,” Urso said.

Stellantis declined to comment.

Urso’s complaint is the latest in a war of words between Prime Minister Giorgia Meloni’s nationalist government and the Franco-Italian automaker, as the two sides hold talks on a plan to boost domestic auto production to one million units.

The law mentioned by Urso says it is illegal to present a foreign-made product as coming from Italy. Typically, it has been invoked against food products, for example U.S.-made “parmesan” cheese resembling Italy’s “parmigiano”.

Stellantis CEO Carlos Tavares was quoted by Automotive News as saying that producing the “Milano” in Poland rather than Italy will shave 10,000 euros off its retail price, which starts at under 30,000 euros ($32,136.00) for its cheaper hybrid version.

FILE PHOTO: Stellantis CEO Carlos Tavares holds a press conference ahead of visiting the Sevel automaker’s plant, Europe’s largest van-making facility, in Atessa, Italy, January 23, 2024. REUTERS/Remo Casilli/File Photo

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(Reporting by Gianluca Semeraro; additional reporting by Giulio Piovaccari; editing by Alvise Armellini and Bill Berkrot)