Pirelli Halts U.S. Investment Plans Amid Regulatory Challenges

Pirelli has confirmed that it currently has no plans for investments in the United States, contradicting prior media reports suggesting a significant $1 billion investment in Georgia during Italian Prime Minister Giorgia Meloni's upcoming visit to the White House. The Italian tire manufacturer is facing governance challenges due to its largest shareholder, China's state-owned Sinochem, which holds a 37% stake in the company. These tensions between Chinese and Italian shareholders, along with increasing regulatory scrutiny regarding Chinese technology in the U.S. auto industry, have stalled Pirelli's expansion plans. Despite a known desire to increase production capacity in the U.S., the company emphasized that decisions are on hold due to these complexities. Pirelli's executive vice chairman highlighted that the geopolitical landscape, including tariffs on auto imports, poses additional challenges for foreign companies looking to expand in the U.S. market.