Several defunct Italian brands could end up in Chinese hands

The government wants to attract Chinese investment with brands that have been discontinued.

Autobianchi brand capital China

Photo by: Fiat

By: Julio Cesar

Published by: Brian Potter

Aug 10, 2024 at 2:31am ET

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In an unexpected move, the Italian government is considering taking control of Stellantis' discontinued car brands and offering them to Chinese manufacturers. The aim, according to Il Sole 24 Ore, is to attract foreign investment and encourage the establishment of Chinese factories in the country.

The brands in the pipeline are Innocenti and Autobianchi, both of which were closed in the 1990s. Innocenti was successful in the 1960s and 1970s with an Italian version of the classic British Mini, before being acquired by Fiat, now part of Stellantis. Autobianchi, a former Fiat unit, was known for its sophisticated city cars, such as the A112 and Y10.

Autobianchi Y10 4WD (1986)

The Italian government cites legal reasons for the takeover. A December law, combined with a decree being examined by the Court of Auditors, allows the appropriation of brands that have been inactive for at least five years.

Once under state control, these firms could be offered to "companies, including foreign ones, that intend to invest in Italy or transfer foreign-based manufacturing activities to the country".

The government accuses Stellantis of neglecting its historic Italian factories. While negotiating to increase domestic production to one million vehicles a year, Italy is also trying to attract a Chinese manufacturer to strengthen the local car industry.

Gallery: Autobianchi Y10 4WD (1986), Why Buy It... Classic

Autobianchi Y10 4WD (1986), Why Buy It... Classic

The situation became even more awkward when Fiat unveiled the Grande Panda, which is made in Serbia, at its Turin headquarters as part of its 125th anniversary celebrations.

Present at the event, Industry Minister Adolfo Urso used the occasion to demand that Stellantis relaunch production in Italy. Something similar to the controversy that arose over the name Milano for Alfa Romeo's new urban SUV, which was eventually changed to Junior as it is a car produced in Poland.

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Today, the Italian government is opening a new chapter in its relationship with Stellantis and signalling its ambition to diversify and strengthen the national car industry. It remains to be seen how Stellantis will react to the 'onslaught' and whether Chinese carmakers will show interest in the brands on offer.

A lot of messing around with brands lately:

Stellantis boss Tavares ready to eliminate unprofitable brands

Official: Stellantis does not want to sell Maserati

Source: Autoblog

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