US warns Pirelli on possible sale restrictions over Chinese investors, Bloomberg says
FILE PHOTO: Pirelli logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay/File Photo
MILAN :The United States has warned Pirelli that sales of vehicles fitted with its data-collecting technology could be restricted due to concerns over the influence on the tyremaker of its Chinese investor, Bloomberg reported on Tuesday.
Pirelli declined to comment, while the U.S. Commerce Department was not immediately reachable for comment.
Italy's Pirelli, whose largest shareholder with a 37 per cent stake is Chinese state group Sinochem, has developed technology allowing data from its so-called Cyber Tyres to be collected and transferred in real time to the vehicle.
The U.S. is cracking down on Chinese technology in the automotive industry, banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads. Software prohibitions take effect in the 2027 model year, those on hardware in 2029.
The informal advisory to Pirelli was outlined in a letter dated April 25 by the Commerce Department's Bureau of Industry and Security, Bloomberg said.
It added that the letter, sent in response to a request for an advisory opinion by Pirelli, said automakers that incorporate Cyber Tyre technology into their vehicles would likely need to apply for a specific authorization to sell them in the U.S.
Pirelli and its second-largest investor Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, have entered a dispute with Sinochem over the tyremaker's governance, claiming Sinochem's leading shareholding position was hindering the group's ability to expand its business in the U.S.
Pirelli makes around 25 per cent of its revenue in North America, which it mostly serves through plants in Mexico, South America and Europe, although it also runs a smaller facility in the U.S. state of Georgia.
Last week CEO Andrea Casaluci said in an interview with Italian daily Corriere della Sera that Pirelli was in a risky situation after Sinochem rejected a proposal by the company to solve its governance issues.
