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Stellantis' Power Play: Leveraging Surplus Plants in Italy's Political Battle

Stellantis, the result of a merger between Peugeot PSA, Fiat, and Chrysler, is using its surplus production capacity in Europe as leverage in negotiations with the Italian government for subsidies and policy support. The company's capacity utilization rate in Europe has declined, prompting it to shift production to other countries in its global network. Italian officials are demanding increased Fiat production, criticizing Stellantis' decisions as favoring France. The company is also facing challenges from Chinese EV manufacturers and a shift in "brain" functions away from Italy, leading to a growing imbalance between the two countries within the company.