by Italian Government Intervened to Limit China’s Control over Pirelli
Pirelli has received permission to start production of its new series of tires in the United States thanks to the intervention of the Italian government. This is an important step for the tire manufacturer, which will help partially offset the impact of US tariffs.
Cyber Tyre Technology Includes Sensors to Improve Driving Dynamics
The company’s plant in Georgia will soon begin production of “connected” tires using Cyber Tyre technology. These tires are equipped with sensors that collect data and interact with the vehicle’s onboard electronics, including ABS and stability control systems, to improve driving dynamics and safety.
These New Tires Will Be Produced at the Pirelli Plant in Rome, Georgia
For more than a year, there were concerns that Pirelli would not be able to produce these tires in the US because Chinese company Sinochem owns 34.1% of the tire giant’s shares. As the US government tightens control over Chinese technology, it seemed likely that Pirelli would have to produce these tires elsewhere.
Italy Saves the Situation
However, the Italian government intervened, using its “golden powers” established to protect companies of national strategic importance. Last month, Italy imposed several restrictions on Sinochem, stating that none of the eight board members previously appointed by Sinochem would be able to hold top corporate positions such as Chairman or CEO.
Furthermore, Sinochem was instructed not to exert any influence over the company, and it was specified that Pirelli should not share confidential information with the Chinese company.
The Pirelli plant in Georgia can currently produce up to 400,000 tires per year. The company did not report how many tires using Cyber Tyre technology will be added to its production.
“The start of Cyber Tyre production at our plant in Rome, Georgia, is a significant milestone for Pirelli in this country,” said Claudio Zanardo, CEO of Pirelli North America. “It reflects our commitment to bringing advanced technologies like Cyber Tyre closer to the market, further strengthening our industrial presence and innovation capabilities in the United States.”
This situation demonstrates how geopolitical tensions between the US and China affect global supply chains, forcing even traditionally European companies like Pirelli to seek complex ways to maintain access to the American market. Italy’s use of its “golden powers” was a key factor that allowed avoiding a complete blockade of innovative tire production in the US. At the same time, the restrictions on Sinochem indicate Rome’s desire to maintain strategic control over an important national asset, despite the significant share of Chinese capital. For the American market, this means access to advanced technology directly from local production, which could become a competitive advantage for automakers seeking to integrate “smart” tires into their models.
