Italy’s invocation of its “golden power” to curb a 37% Sinochem stake marks an initial step toward aligning Pirelli’s governance with forthcoming US connected-vehicle rules. The move paves the way for renewed expansion in America’s high-value tyre market
Chinese control curtailed. Following Monday’s board meeting, Pirelli confirmed that Italy’s decision to deploy its golden-power authority has effectively ended the Chinese control over the tyremaker through MPI Italy (controlled by the state-owned conglomerate Sinochem).
- In a note, Pirelli stated that this development “represents a first, but not decisive, step on the path to the necessary adjustment of company governance to regulatory constraints in the USA, a key market in the High Value tyre segment and for the development and distribution of Cyber Tyre technology.”
- Management pledged to continue discussions with all major shareholders to ensure compliance with American rules on connected vehicles “in the interests of the company and all its stakeholders.”
A governance shift. The US has announced bans on key software in Chinese-controlled automotive suppliers starting with the 2027 model year and hardware restrictions kicking in by 2029.
- By reining in Sinochem’s influence, Pirelli aims to safeguard its access to one of its most important markets and maintain leadership in advanced tyre solutions.
What happened. Pirelli’s Italian second-largest shareholder, Camfin, and management had long argued that Sinochem’s 37% holding impeded growth plans in the US market.
- Under Italy’s golden power law for strategic firms, the government intervened in 2023 to preserve operational autonomy.
- Nine of the 15 directors supported Monday’s resolution.
- Sinochem’s chairman, Jiao Jian, and four other Chinese-appointed members opposed it; one abstained.
- The state-owned conglomerate objected to losing its de facto control, contending that the golden-power framework does not strip shareholders of voting rights.
- It has yet to announce any legal challenge.
