Why this is important to Wisconsin businesses: Wisconsin companies involved in auto industry research and technology may find opportunities to get involved.
Italy is known for its high-end sports cars, but the country’s automotive industry took a blow in 2024.
Production in Italy by Amsterdam-based car maker Stellantis—whose brands include Alfa Romeo, Fiat, Maserati, and Chrysler—declined 37% in 2024, according to Reuters news. Stellantis presented a plan in December to boost production, but it would not take effect immediately.
Citing figures from the Italian metal workers union, the Reuters report said Stellantis manufactured 475,090 vehicles in Italy in 2024, down from 751,384 in the previous year. Car production dropped 46%, hitting its lowest level since 1956, while commercial vehicle manufacturing fell 17%.
Stellantis has five auto manufacturing plants in Italy and one commercial vehicle plant.
Overall, motor vehicle manufacturing in Italy stood at 591,000 in 2024, which was a record low, down from 873,000 in 2023, according to CEIC economic data.
The automotive industry is an important segment of Italy’s economy. Traditionally, the industry has contributed 5% to the country’s gross domestic product and provided jobs for 270,000 people, according to an article by CE Interim, a global executive management firm.
Stellantis plans to invest €2 billion ($2.3 billion USD) in 2025 as part of a broader, four-year €10 billion ($11.4 billion USD) commitment, and that could provide the type of strategic pivot that the industry needs, the article said. The plan includes a pledge to keep all factories in Italy open through 2032, aims for energy efficient production and more electric vehicles, chooses Turin as Stellantis’s European capital as of 2025, and anticipates more than a dozen new models will be introduced, starting in 2026.
Italy’s automotive industry is centered around four key regions:
• Piedmont: Home to a major industrial district led by the FIAT-Chrysler group
• Emilia-Romagna: The birthplace of world-renowned Italian luxury automotive brands Ferrari and Lamborghini
• Lombardy: A hub for component manufacturing, with a strong concentration of suppliers in Brescia province
• Abruzzo: An innovation-driven district focused on advancing new technologies for motor vehicles and machinery
In addition to vehicle production, Italy also houses a robust components industry. According to the Italian metal workers union, Italy’s automotive components sector included 2,167 companies in 2022, employing about 167,000 workers and generating €56 billion ($64 billion USD). Growth has been particularly strong among subcontractors and specialized component manufacturers, with production rising more than 10% from 2021 to 2022.
As part of the global shift towards sustainability, Italy’s automotive industry is embracing environmentally friendly mobility solutions. According to the Association for Manufacturing Technology, about 80% of automotive companies in Italy have implemented environmental policies, prioritizing electric vehicles and sustainable transportation research and development.
In 2022, plug-in hybrid and electric vehicles made up 23% of production, totaling 113,000 units, and that number is projected to triple by 2026, according to the association.
Italy is actively pursuing international partnerships to diversify its domestic automotive sector, and Wisconsin manufacturers may be able to play a role in that effort.
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