Electric car transition puts more than 70,000 jobs at risk in Italy, unions and lobby say

Workers install a flag with the logo of Stellantis, the world’s fourth largest automaker which begins marketing in Milan and Paris after Fiat Chrysler and automaker Peugeot PSA complete their merger, at the main entrance to the FCA Mirafiori plant in Turin, Italy, January 18, 2021. REUTERS/Massimo Pinça/

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MILAN, Feb 3 (Reuters) – The switch to electric vehicles will put around 73,000 jobs at risk in Italy, metalworkers’ unions and a lobby group said on Thursday, calling on the government to start talks on measures to support electric vehicles. ‘automobile industry.

Analysts say the auto sector in Italy could be hit harder than elsewhere due to the small average size of businesses in the country and the scale of investment needed to comply with the ‘Fit-For-55’ climate plan. of the European Union to phase out combustion engines by 2035.

“This plan, if not accompanied by (government) intervention, could lead to the loss of around 73,000 jobs in Italy, including 63,000 over the period 2025-2030,” a statement said. the employers’ group Federmeccanica and the trade unions FIM, FIOM and UILM. rare common statement.

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They said vehicle production in Italy fell from more than 1.8 million units in 1997 to 700,000 last year, including less than 500,000 cars.

“We need to get back to producing around 1.5 million units a year,” said Francesca Re David, head of IMF.

The automotive industry in Italy directly and indirectly employs 278,000 people and accounts for around 6% of the country’s gross domestic product, according to data from automotive association ANFIA.

Earlier this week, Industry Minister Giancarlo Giorgetti said he would come up with proposals for incentives to support Italy’s car industry in the coming weeks.

The unions are also urging the government to reach a definitive agreement with Stellantis (STLA.MI), the country’s largest automaker, to build a battery manufacturing plant to power production of electrified vehicles in Italy.

Stellantis CEO Carlos Tavares said last year the group would build one of its European battery factories in Termoli, central Italy, but a deal with Rome has yet to be signed. .

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Reporting by Giulio Piovaccari Editing by Mark Potter

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