Alfa Romeo‘s new entry-level model, the Milano, has been unveiled with a starting price of €29,900 for the hybrid version with a 136-horsepower engine. Stellantis has entrusted the production of the new Alfa Romeo car to its Tychy plant in Poland. However, the Italian government has commented on this decision, stating that it is illegal to produce it outside of its country of origin due to its name.
Alfa Romeo Milano’s low price is due to its production in Poland, but Italy says this is illegal
Adolfo Urso, Italy’s Minister of Industry, explained that producing a vehicle called Milano outside of Italy violates the country’s laws targeting products with “Italian-sounding” names but are not actually Italian. “A car called Milano cannot be produced in Poland. This law prevents consumers from being misled. So a car called Milano must be produced in Italy by law. Otherwise, it is a misleading indication and is not permitted by Italian law.”
Carlos Tavares, CEO of Stellantis, has not commented directly on the news, but at the model’s launch, he explained that Alfa Romeo Milano‘s competitive price is precisely due to the model’s production in Poland. If it had been produced in Italy, Milano would have had a cost of over €10,000 more.
“If built in Italy, Alfa Romeo Milano would have started at around €40,000 instead of €30,000, limiting its market potential,” Carlos Tavares told Automotive News. The law cited by Minister Urso is from 2003 and was primarily passed against food products, such as “Parmesan” cheese produced in the United States, a copy of the real Italian Parmigiano.
Stellantis’ decision to produce Alfa Romeo Milano in Poland was reportedly made solely to allow the vehicle to have a market and to make its customers spend less, thus giving them the opportunity to purchase the new compact SUV at a more affordable price.