Chinese car

Today, what is "braking" electric vehicles is not the technology, but the failure of European manufacturers (such as Stellantis) and a segment of Italian politics to make decisive choices, as they blame every difficulty on the European Green Deal. This is not just an anti-environmental stance, but a clear inability to define a collective project for the economy, industry, and labor.

Here are some key considerations regarding the sector:
a) European decline: Since 2010, EU manufacturers have continued to lose global market share. A strategic industry is thus ceding ground in terms of technology, growth, and employment.

b) Internal vs. external causes: Many point the finger at external factors, such as Green Deal constraints or the ban on combustion engines by 2035 (a rule that has, moreover, already been relaxed). In reality, the limitations and strategic decisions of manufacturers weigh much more heavily. The modern car is a complex product that requires massive investments, large volumes to cut costs, shared platforms and floorpans, continuous research, and integrated services.

c) Technological evolution: The rapid rise of electronics and software now enables the rapid development not only of hybrid versions, but of 100% electric cars equipped with advanced driver-assistance systems (ADAS).

d) The China factor: Beijing is experiencing an unstoppable phase of expansion, driven by extraordinary production efficiency and massive investments in research and development.

e) The Italian market and purchasing power: Out of a global production of 73 million vehicles, Europe produces 14.4 million (4 million of which in Germany). In Italy, the market is contracting due to soaring prices: up 66% between 2000 and 2021, compared to inflation of 38%. Disposable income makes all the difference: in France or Germany, an electric city car costs 6 to 7 months' salary; in Italy, it takes 15. The result? An aging vehicle fleet (13 years on average) and a market dominated by used cars.

The crisis in domestic production: In 1990, Italy produced 2 million vehicles; today we have dropped to 270,000 cars. Hungary and Romania now produce more than we do. Italy is the only industrialized country with a single manufacturer, Stellantis, which has often prioritized shareholder dividends over investments in competitiveness. The Italian supply chain (2,200 suppliers and 200,000 workers, concentrated in the Northwest) depends 50% on Stellantis and suffers from a lack of autonomy. Most of these companies, in fact, lack their own co-design and research capabilities. Some have diversified their operations and produce for foreign markets, but the contraction in orders affects all manufacturers. Furthermore, foreign-owned suppliers risk abandoning Italy to follow the countries where cars are actually being manufactured. Without new orders and with the transition to electric vehicles (which require 30% fewer components), the risk of industrial desertification is real.

Is Italy destined for the periphery of industry? Without courageous choices, yes. While Stellantis strikes deals to produce Chinese cars (outside of Italy, however), our country must react. We need to bring national production back up to at least one million vehicles, innovate in batteries and software, and upgrade the charging infrastructure. It is paradoxical that the Green Transition Fund keeps getting cut: serious investments in digitalization and renewables are needed. At stake is not just the electric car, but the very future of Italy's industrial system.


Carlo Degiacomi
NP April 2026