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Stellantis’ Problem Is Ownership Not CEO, Italy’s Salvini Says

RBC Capital Markets analyst Tom Narayan explains Stellantis' recent shakeup amid CEO Carlos Tavares' exit.

(Bloomberg) -- The problem at carmaker Stellantis NV is “more about its ownership” rather than former Chief Executive Officer Carlos Tavares, according to Italian Deputy Premier Matteo Salvini.

“It’s an ownership that has little that is Italian at this point, that has received money in Italy for decades to open factories abroad,” he said on Tuesday. “It’s one of the worst examples of how not to do entrepreneurship — with public money.”

Salvini, who also is his country’s transport minister, has long been a vocal critic of management at the troubled carmaker, which saw Tavares step down Sunday night amid financial turmoil. His criticism stands in contrast with that of Prime Minister Giorgia Meloni, who late on Monday said her priority would be protecting workers at the carmaker.

“Elkann should have come to Parliament with a check, not with words, with a check that takes into account how many billions in public money this company has taken in the face of economic results and firings,” he said, referring to a controversy surrounding an invitation extended to Stellantis Chairman John Elkann to speak in Parliament, which he rebuffed.

In general, Salvini, whose League is a junior coalition partner in Meloni’s government, tends to be significantly more outspoken than the prime minister on a range of matters, including most recently on UniCredit SpA’s unsolicited bid for Banco BPM SpA.

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