Alfa Romeo has encountered an unexpected roadblock from the Italian government in the grand unveiling of its first electric crossover, the Milano. The car manufacturer’s decision to name their product Milano has stirred controversy, as it refers to a lively Italian city but is produced in Poland. The Italian law from 2003 prohibits marketing products with Italian-sounding names if they are not manufactured in Italy. This has raised concerns. This law has caused a controversy around the car’s name and its production location. This law, intended to protect consumers from misleading geographical indications, has landed Alfa Romeo, owned by automotive giant Stellantis, in hot water.
According to Italy’s Minister of Economic Development, Adolfo Urso, it is illegal to manufacture a car called Milano in Poland. He thinks that using the name “Milano” to represent a car produced in another place could deceive consumers who associate it with Italian culture and expertise.
This stance has sparked debate within the automotive industry. Proponents of the law believe it safeguards the reputation of Italian-made products, renowned for their design and quality. Opponents argue that in an increasingly globalized market, such restrictions hinder competition and brand strategy.
Stellantis, on the other hand, maintains that producing the Milano in Poland allows for a more competitive price point. The company has not yet responded to the Italian government’s claims. According to industry analysts, manufacturing the Alfa Romeo Milano in Poland achieved a price reduction of around €10,000, making it an attractive entry-level electric vehicle. During the launch of the new model, Stellantis CEO Carlos Tavares announced that the company was able to reduce the price of the Milano to less than €30,000 (~$32,000) by building it in Poland rather than Italy. The Milano is the only Alfa Romeo car ever produced outside of Italy.
Legal and Cultural Challenges in Car Naming: Alfa Romeo’s “Milano” Dilemma
The situation raises questions about the future of Alfa Romeo’s branding strategy. Will Stellantis challenge the legal implications, or will they rename the Milano for the Italian market? The outcome could set a precedent for other car manufacturers using geographically-inspired names.
This isn’t the first time Italy has flexed its legal muscle regarding product names. In 2010, the US caused a conflict by attempting to sell a cheese called “Asiago” not produced in Italy’s Asiago region. The case ultimately went to the European Union, which ruled in favor of Italy’s designation of origin protection for the cheese.
The Milano situation differs slightly. “Asiago” is a specific, protected designation of origin, while “Milano” is a city name. This distinction might influence how the courts view the case if it goes that far. Beyond legalities, the controversy highlights the emotional attachment Italians have to their cultural heritage. Alfa Romeo, a brand steeped in Italian racing history, using a city name for a car built elsewhere touches a nerve.
The coming weeks will be crucial. Will Stellantis adhere to the “Made in Italy” regulations for automobiles? The fate of the Milano name, and potentially future Alfa Romeo models with Italian city names, hangs in the balance.