The Automotive Industry in Italy: Between the Supplier Crisis and the European Challenge. A Conversation with Domenico De Rosa, CEO of SMET Group
In recent days, Minister Adolfo Urso has spoken out forcefully both in Brussels and in Parliament to bring the issue of Stellantis’s future—and, more broadly, that of the Italian automotive sector—back to the forefront of the debate. For Cavaliere Domenico De Rosa, this intervention had the merit of breaking a silence that had lasted far too long.
“Minister Urso,” says De Rosa, “reminded everyone of a truth that we entrepreneurs know well. Italy cannot afford to remain a spectator while others decide the fate of our manufacturing sector. Stellantis is a pillar of our industry, and behind it stand thousands of Italian small and medium-sized enterprises, which are currently in serious difficulty.”
His words flow with the pragmatism of someone who knows the numbers and the people behind the factories. “The problem is twofold. On the one hand, there is a parent company reducing production capacity across the country: plants like Mirafiori or Cassino are operating well below their potential. On the other, Brussels continues to impose ideological constraints, such as the ban on internal combustion engines starting in 2035, which risk wiping out entire sectors without offering a concrete alternative.”
As he speaks, his tone becomes more reflective, almost bitter. “Supplier companies, from components to logistics, are the beating heart of a body of knowledge built up over decades. They have invested in skills, in people, in technology. Today, however, they are facing a paradigm shift.”
Then he pauses for a moment and adds, “Let’s not forget that 35.7 percent of European automobile production is concentrated in Germany, which remains the continent’s true industrial powerhouse, with over four million cars produced each year. Spain, with nearly 1.9 million cars, has managed to defend its industrial capacity and attract new investments. Italy, on the other hand, stands at just over 300,000 units, a mere 2.7 percent of the European total. It’s a figure that speaks for itself and points to a worrying decline in competitiveness.”
When the conversation turns to European policies, Cavaliere De Rosa does not hide his disappointment. “The Green Deal,” he explains, “has transformed a noble goal like sustainability into an ideological cage. Politics has not only decided the destination but also the path to get there, imposing a single technology: battery-electric. It is a serious mistake, because innovation does not arise from imposition but from the freedom to research. In the United States and China, they are investing in electric vehicles, but also in hybrids, hydrogen, and biofuels. In Europe, however, we are proceeding with a dogmatic vision that penalizes our industry.”
“There’s no need to ban internal combustion engines by 2035,” he insists. “What we need is to ensure technological freedom. We must let the market and science decide on the most effective solutions for reducing emissions. Because the goal isn’t the type of engine, but the overall environmental impact. The ecological transition must be guided by pragmatism, not fanaticism.”
His voice grows firmer when he speaks of the consequences of this approach. “If we don’t change course, we risk an industrial wasteland. Not just the closure of historic factories, but the loss of the entire wealth of expertise that revolves around manufacturing. Every car produced in Italy generates jobs in repair shops, transportation, logistics, and materials supply. Destroying this supply chain means impoverishing the country.”
Then he adds in a more human tone, “This isn’t about defending the past. I believe in the ecological transition, but it must be managed with balance. We must protect the competitiveness, the jobs, and the know-how we’ve built over decades of industrial history. Otherwise, we won’t have a future.”
In conclusion, De Rosa summarizes his vision in three points. “First, defend Stellantis’ Italian plants and tie any public incentives to concrete industrial production plans in our country. Second, support the supply chain with concrete tools for technological conversion, not with temporary subsidies. Third, push within Europe to abolish the ban on internal combustion engines starting in 2035 and finally introduce technological freedom.”
He pauses, then concludes with a statement that sounds like an appeal: “Only in this way can Italy remain a manufacturing nation and not become merely a consumer market for cars produced elsewhere. Defending our industry means defending jobs, dignity, and the country’s economic sovereignty.”

