MILAN: Chinese and Italian shareholders in Pirelli are at odds over the group’s governance, two sources said, with the Chinese investor potentially a hurdle for the Italian tyremaker’s plans to do more business in the United States.
China’s state-owned Sinochem is the largest investor in Pirelli with a 37% stake in Pirelli, at a time when China is the US’ top military and cyber threat, according to a report by US intelligence agencies published on Tuesday.
Washington is cracking down on Chinese technology in the automotive industry, banning key software and hardware from Chinese-controlled companies in connected vehicles on US roads.
While software prohibitions take effect in the 2027 model year and those on hardware in 2029, vehicles expected to be sold in those years are being developed now.
Some of the tyres Pirelli produces are fitted with a technology capable of collecting data during motion and transferring the information in real time to the vehicle. Any setback for Pirelli’s technology in the US could also have repercussions on its wider global sales.
The Italian tyremaker makes around 25% of its revenues in the North American market, which it mostly serves through output from its plants in Mexico, South America and Europe.
The group also runs a smaller plant in the US state of Georgia. Presenting full-year results last month, Executive Vice-Chairman Marco Tronchetti Provera said Pirelli could consider expanding its US output to limit the impact of possible tariffs.
But new investments in the US could face an obstacle in the link between Pirelli and its Chinese shareholder.
Discussions are ongoing between Pirelli and Sinochem on how to further reduce the Chinese conglomerate’s influence on the tyremaker, the sources said, after the Italian government intervened in 2023 to curb the Chinese group’s powers and shield the autonomy of Pirelli management.
This could include convincing Sinochem to progressively divest from Pirelli, while alternative options could entail Rome removing Sinochem’s voting rights in Pirelli, one of the sources said. Rome last year also supported European Union tariffs on Chinese-made electric vehicles.
Pirelli declined to comment on the reports, while representatives of Sinochem were not immediately available.
Pirelli’s second largest investor is Camfim, the vehicle of businessman Tronchetti Provera, who has led Pirelli since 1992.
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