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“Prohibited by law”: Alfa Romeo SUV is called Milano but will be produced in Poland, Italy gets angry

The Italian Industry Minister reacted strongly to the fact that Alfa Romeo’s latest model, the Milano SUV, will be produced in Poland. An imperative of production costs, responded the head of Stellantis.

The Alfa Romeo Milano will not be produced in Italy. A shame for a model of a transalpine brand that bears the name of the main city of Lombardy, where it was founded in 1910. For the Italian Minister of Industry, this would even be an illegal practice:

“A car called Milano cannot be manufactured in Poland. It is prohibited by Italian law,” reacted Adolfo Urso, quoted in an Automotive News article.

A reference to a law passed in 2003, but which rather refers to food and beverages within the framework of the PGI (Protected Geographical Indication), recalls Leblogauto.

A Milano assembled in Poland

Another law, from 2009, also regulates designations such as “Made in Italy”, “100% Italy”, for products that must be entirely “manufactured” in transalpine soil.

The Alfa Romeo Milano is produced at the Stellantis plant in Tychy, Poland.
The Alfa Romeo Milano is produced at the Stellantis plant in Tychy, Poland. ©Alfa Romeo

However, Alfa Romeo’s communication does not seem to lead to confusion: the brand does not necessarily suggest production in Italy, beyond the name of this model, of course.

Alfa Romeo also insists on its design in Italy, in the design center of… Turin, the city of Fiat. Another possible scandal for the alfistas, who are already quite critical of this new small SUV, cousin of the Fiat 600e and the Jeep Avenger (also produced at the Stellantis factory in Tychy, Poland) and the first 100% electric model of the Milanese brand.

The cost of production argument.

Questioned on the sidelines of the presentation of this new model, the head of Stellantis, Carlos Tavares, recalled his conception of the geographical origin of a model:

“The creation of the product is done in Italy. The design is done in Italy. The engineering is done in Italy. The fact that the car is assembled in another country does not mean that it is not Italian,” he stressed. in comments transcribed by Motor1.

Alfa Romeo's first 100% electric model, the small SUV Milano.
Alfa Romeo’s first 100% electric model, the small SUV Milano. ©Alfa Romeo

Next, the director explains the main argument for his choice, the production cost, referring in passing to his first car:

“My first car was an Alfa Sprint. When we bought it, if it had been 15 or 20% more expensive, the conclusion would have been that my first car would not have been an Alfa Romeo,” he begins.

“The answer is simple: we can produce all Alfa Romeos in Italy, but we will not get a Milano for 30,000 euros. We could have acquired it for 40,000 euros, which would limit its potential in the market,” continues Carlos Tavares. An imperative of “profitability” to “guarantee the sustainability of the brand,” according to the head of Stellantis.

“If you have to expand your customer base and convince the younger generation to buy several Alfa Romeos over their lifetime, at some point you have to be able to win them over starting with the price they can pay.”

The Experts: Tavares, criticism of his remuneration - 04/08
The Experts: Tavares, criticism of his remuneration – 04/08

26:41

Tensions over the future of Italian industry

A defensible argument is that two future models expected from Alfa Romeo, the next generation of the Giulia sedan and the higher-end Stelvio SUV, will be well assembled in Italy, at Cassino.

This skirmish with the Italian Minister of Industry must also be placed in the context of concern for the future of the transalpine automobile industry. The president of the Italian Council, Giorgia Meloni, has been very critical for several months about the consequences of the merger between PSA and Fiat-Chrysler (FCA) that gave rise to Stellantis in 2021.

Concern is growing about the future of the local automobile industry, in a context of accelerated transition to electric, while the market share of this engine struggles to take off in Italy.

Other examples… in France

While there are many examples of car models that carry or have carried city names, this naming is often explained for marketing reasons, without any direct link to the chosen city, as we can see in this slideshow from The Argus.

Among the rare exceptions: unfortunately, it falls to Alfa Romeo with the Brera coupe produced between 2006 and 2010, and which takes its name from a historic neighborhood in Milan, its city of origin. A model fortunately at the time very “made in Italy”, in the Pininfarina factory, currently abandoned and which also assembled the legendary Peugeot 406 coupé.

We can also cite models from French brands that are very successful “despite” their production abroad. This is especially the case of the Peugeot 208 (Slovakia and then Spain) or the Renault Clio (Turkey), sales stars for many years.

Diamond models that are also decorated with small French flags in an “Alpine Spirit” finish regardless of the country of production. This is the case of the Clio, but also the Austral or the Captur, assembled in Spain, as well as the next Renault Rafale. What deserves an intervention from the French Minister of Defense?

Author: Julien Bonnet
Source: BFM TV

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