Stellantis chief executive Carlos Tavares says building the Milano in Poland has allowed the marque to slash €10,000 from its price
April 12, 2024 at 06:37
- The country’s industry minister has cited a law targeting products with Italian names not produced in Italy.
- Alfa Romeo will sell both ICE and EV versions of the Milano.
- Stellantis has not commented on the government’s recent statement.
The Italian government has hit out at Alfa Romeo’s decision to build its new Milano crossover in Poland, saying that building it outside of the brand’s home nation is illegal.
Shortly after Alfa Romeo unveiled the new model at a glitzy event, Italy’s industry minister Adolofo Urso asserted that building a vehicle dubbed Milano outside of Italy violates the country’s laws targeting products with “Italian sounding” names that are not actually Italian.
Read: New Milano SUV Is Alfa Romeo’s First Ever EV
“A car called Milano cannot be produced in Poland,” Urso said. “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.”
At the launch of the new model, Stellantis chief executive Carlos Tavares said building both the ICE and EV versions of the Milano in Poland as opposed to Italy as allowed it to shave off €10,000 (~$10,700) from its price that’ll start at under €30,000 (~$32,000). It will be the only Alfa Romeo built outside of Italy.
“If built in Italy, a Milano would have started from about €40,000 (~$43,000) instead of €30,000, limiting its potential on the marketplace,” Tavares told Auto News at the new model’s launch.
The Italian government is determined to grow local car production and has come at Stellantis in the past. The carmaker has pushed for local subsidies and policy support to help boost production but the government has not been forthcoming. Despite this, tellantis has committed to increasing annual production in Italy from 750,000 units to 1 million units. Italy’s government continues to speak with a handful of other car manufacturers, including Tesla, to try and convince them to build vehicles in the country.
Stellantis has declined to comment on Urso’s latest statement. The law cited by Italy’s industry minister has usually been invoked against food products, like ‘parmesan’ cheese made in the U.S. that resembles authentic ‘parmigiano’ from Italy.
Alfa Romeo has confirmed the Milano will be offered in several different guises. The sole ICE model will use a turbocharged 1.2-liter petrol engine with a 48-volt system and a small electric motor. Battery-electric versions with 154 hp and 237 hp will also be available.
