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  3. >>>ANSA/Think govt will find 1 bn for auto sector - Tajani

>>>ANSA/Think govt will find 1 bn for auto sector - Tajani

Car production down 40.4% yr-on-yr in September

(ANSA) - ROME, DEC 10 - Deputy Premier and Foreign Minister Antonio Tajani said Tuesday he thought the government would be able to find in the 2025 budget some one billion euros for Italy's struggling car sector amid slumping Stellantis sales and fears of further job cuts.
    Trade unions have said another 12,000 jobs are at risk while Stellantis has said it needs money to be able to guarantee Italian plants amid rumours of more offshoring of production.
    Stellantis contractor Trasnova last week announced almost 100 redundancies.
    "I think we will find about 1 billion to support the car industry", said Tajani to Rai state broadcaster when interviewed on Monday night's government summit on the budget.
    "Yesterday we decided on a series of initiatives to support the industry, both the reduction of the (business tax) IRES, we gave a signal with the tax wedge, and we cut the web tax for small businesses", he added.
    The Italian-French-American carmaker is embarking on a new chapter after Carlos Tavares resigned as CEO at the start of the month.
    The Portuguese manager, one of the architects of the 2020 merger between Fiat-Chrysler with Peugeot, is a controversial figure in Italy after a series of run-ins with the political world.
    He made waves at a parliamentary hearing in October when he said car production in Italy was too expensive unless the government delivered fresh incentives for the sector.
    He subsequently failed to rule out redundancies at Stellantis's Italian plants.
    Former industry minister and centrist Azione (Action) party leader Carlo Calenda recently replied to Tavares saying: "the dramatic situation of Stellantis is clear in the numbers; employees have decreased by 11,500 units, another 3,800 will leave this year, the gigafactory of Termoli will not be built, the production of commercial vehicles at an all-time low (-31%), Italian models, from the 500 to the Topolino to the Panda to the Alfa Romeo junior produced in Algeria, Serbia, Morocco, Poland, while Mirafiori had a drop of 83% in 2024".
    The depth of the crisis of the Italian auto sector was shown by Istat data released on Tuesday that said car production fell 40.4% year-on-year in September.
    The drop in the first nine months of 2024 was 27.9%, the national statistics agency said.
    It also said that Italy had the highest number of cars per capita in the EU in 2023, with 694 passenger vehicles for every 1,000 inhabitants.
    That compares to an EU average of 571 cars for every 1,000 residents.
    The national statistics agency that the transition towards less-polluting cars is going slowly. It said hybrid vehicles accounted for 6.9% of the cars in regional capitals and only 0.6% were electric.
    Istat said 47.4% of cars in Italy were run on petrol, down 0.8 of a percentage point a year since 2015, while 35.2% were powered by diesel, down 0.3 of a point a year since 2015.
    (ANSA).
   

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