The Italian government against Alfa Romeo

In Italy, they don't like the fact that Alfa Romeo plans to produce the Milano in Poland. The reason? It's a violation of the law. About politics, patriotism, and pragmatism.

  (photo credit: AP)
(photo credit: AP)

There are many things one can admire Italians for, their cuisine, art, design, and their greatest gift to the world - at least from our point of view - the automotive industry with a place of honor in motor history. But when it comes to organization and order, well, maybe they are not the worst in the European Union, but we can think of slightly more refined countries in the region.

And this story is definitely a noteworthy example. The new Alfa Romeo model, the Milano, named after the city of Alfa Romeo's birth, whose symbol, the flag with the red cross on a white background and the snake swallowing a human of the Visconti family, appears on the company's logo.

On the importance of the model to this manufacturer in terms of its ability to survive and its place in its grand 10-year plan, you can read here. But this model, despite all its importance, may face its first obstacle before entering its official production. Why?

One of the Milano's goals in Alfa's offering is to generate profit margins that will ensure the manufacturer's survival. That's why it uses a shared platform with other versions of the group, that's why it's offered in two modest driving versions, and for the same cost-saving reasons, it's supposed to be produced in Poland.

Meet Adolfo Urso, the Italian Industry Minister who shortly after the launch of the model last week, announced through his office that building the model outside of Italy constitutes a violation of the law. It turns out that there is such a law in the Italian legal statutes that prohibits the production of products bearing an Italian name or identity outside of Italy.

  (credit: Keinan Cohen)
(credit: Keinan Cohen)

"A car called 'Milano' cannot be manufactured in Poland," he stated, "the law stipulates that customers should not be misled regarding the product name. So, a car named Milano must be built in Italy. Otherwise, it would be considered deception, which is prohibited by Italian law."

Contrary to the patriotic fervor and concern for customers, behind the scenes of the sudden Italian adherence to the rules, there is a complex economic struggle the government is facing to keep job opportunities in Italy.

Car manufacturing is one of the most significant driving forces in the Italian economy historically, and the Italian government has been trying to attract car manufacturers through subsidies and economic incentives in recent years. However, Stellantis continues to move car production out of Italy, including models manufactured by Fiat (such as the new 600), and now also the Milano, which will be the first Alfa to be entirely built outside of Italy. Therefore, in this case, for the Italian government to name a model after an Italian city and then produce it in Poland is nothing short of a slap in the face.

Where might this story develop? It's not very clear. But as long as there is no change in Italian law, government policy, or the car's name - two things can be certain - the production of the Milan will not be in Italy and its name will not change.

Why? Because its production in Poland reduces the cost of the car by about 10,000 euros, at least according to Carlos Tavares, CEO of Stellantis. On the other hand, even changing its name, after it was launched, is not likely to happen, although there was a historical precedent and it revolves around the same name.

In 1985, Alfa Romeo introduced the 75. Its sports Sedan car that competed with BMW Series 3 and similar models. It received its name because it was the 75th birthday of the manufacturer. It is also considered the "last true Alfa" in its time with rear-wheel drive before Fiat's full takeover. However, when it reached the American market a year later, it changed its name to "Milano" in order to give it a more Italian flair and also because the American customer who received the car a year later did not attach much significance to Alfa's "75" birthday.