Italy will provide subsidies worth almost 1 billion euros ($1.1 billion) this year to support car purchases and the transition to less polluting vehicles, an industry ministry official said on Thursday.
The outlay is part of a wider multi-year program, worth over 8 billion euros, that Italy announced in 2022, to support its carmaking industry.
The new incentive scheme comes amid a clash between the Italian rightist government and Fiat-owner Stellantis (STLAM.MI) over the group's production levels in the country, with prime minister Giorgia Meloni saying last week that the Franco-Italian automaker had sometimes acted against the national interest.
Stellantis CEO Carlos Tavares also said last week that Italy was spending less than other major European countries to support the development of electric vehicles and that approach was holding back production.
The government and Stellantis, Italy's sole major automaker, have been in talks since last summer over a long-term plan to reverse a decline in national automotive output, which includes an aim to increase Stellantis' annual output in the country to one million vehicles.
($1 = 0.9264 euros)
