Pirelli: Still Italian, But With a Twist
Pirelli is one of the default names for drivers who care about performance. From high-end road cars to Formula 1, the Milan-based tire maker is renowned for its premium rubber and proprietary technology. To regular consumers, it’s Italian through and through, both in image and in heritage.
Here’s what most people don’t realize: over a third of Pirelli is owned by Sinochem, a Chinese state-run chemical giant. That 34 percent stake is now a major headache, the Financial Times reports. The US is getting ready to enforce new rules aimed at Chinese-backed tech in vehicles, and Pirelli could end up locked out of the American market if nothing changes.
Pirelli doesn’t just sell basic tires in the US. Most of what it offers is high-end, packed with its own tech – the exact kind of thing regulators are now watching closely. Company leaders have explored ways to curb Sinochem’s influence, even discussing selling off the stake, but so far, nothing concrete has happened.
Pirelli P Zero on a BMW
Rome Watches Closely—and Prepares to Act
Italy’s government has been in the mix for a while, but now the pressure is back on. With US restrictions coming in March, Rome is ready to step in again if talks don’t move forward.
Under Italy’s so-called “golden powers” legislation, the government can impose limits on foreign shareholders in companies deemed strategically important. That power has already been used once. In 2023, Italy restricted information-sharing between Pirelli and Sinochem and raised the voting threshold for key board decisions, citing the need to protect sensitive know-how.
If negotiations fall apart, Italy could go as far as freezing Sinochem’s voting rights. Officials would rather avoid that, hoping for a deal that keeps Pirelli strong without picking a fight with China.
Pirelli
All Roads Lead Back to the US Market
The US accounts for roughly one-fifth of Pirelli’s total revenues, making it too large to lose without serious consequences. It is also a key market for premium and performance tires, where margins are healthier, and brand equity matters more.
Losing the US wouldn’t just hit sales; it would knock Pirelli down a peg as a global tech leader in tires. That’s why Italy is ready to get involved, and why options that once seemed off the table are now up for debate.
Dan Krauss of DanK Haus Productions
