ROME, March 6 (Reuters) - Italy's Leonardo is
not talking to automotive producers, such as Stellantis ( STLA )
, about possible partnerships to produce military
equipment, the state-controlled defence company's chief
executive said on Thursday.
As Europe sets out to raise military spending - with EU
leaders meeting to discuss proposals to mobilise up to 800
billion euros ($843 billion) for rearmament - unused car plants
across the bloc are seen as a quick way of ramping up military
production while reviving a suffering industry.
In Germany, defence companies are seeking more capacity,
while carmakers, for decades the country's economic powerhouse,
are cutting jobs and shutting plants amid slowing demand and a
faltering electric vehicle transition.
"We do not have any ongoing discussions with carmakers, too
early, it would be impossible," Leonardo CEO Roberto Cingolani
said at a press conference in Rome.
Cingolani said the car industry could make a limited
contribution to efforts to boost defence production.
"In a certain way the automotive industry could be used
for some components... but (a production conversion) from cars
to tanks would be very hard," Cingolani said.
The Leonardo CEO said that defence companies would have
to make choices on ways to increase their production in the face
of a spike in defence spending and the consequent rise in
orders.
He repeated that alliances would be the way forward to
produce more without having to, necessarily, invest in new
production facilities.
He conceded that the automotive industry in Europe needed
help after suffering from "decisions that were not
technologically neutral, but going from cars to tanks is not the
solution".