This chapter analyses the causes and consequences of the decline of the automotive industry in Italy. It focuses on the central negative role played by the ownership and management of Fiat-FCA and shows how the creation of Stellantis is further increasing the vulnerability of the Italian automotive sector in the context of the international restructuring driven by electrification. It discusses the consequences of this development on the Italian component industry and how public policies have failed to address the decline or support the transition towards electrification. The chapter also analyses in greater detail the subordinate position taken by Italian automotive suppliers in the European value chain, and its important consequences for permanent geographical and organisational reorganisation. It discusses the additional threats that this transformation and the current fast transition towards battery electric vehicles pose to production and employment levels in Italy.