Italy steps in as Pirelli moves smart tyre production to America

Italian tyre maker Pirelli said it will begin producing its advanced Cyber Tyres in the United States after Italy moved to reduce the influence of Chinese investor Sinochem over the company.

The move highlights growing pressure on global manufacturers to separate sensitive technology from Chinese ownership as Washington tightens rules around foreign-linked automotive systems.

Pirelli said the connected tyres will be produced at its factory in Rome, Georgia, expanding its U.S. manufacturing footprint and bringing its latest digital tyre technology closer to American customers.

Cyber Tyres use sensors embedded inside tyres to collect and transmit real-time driving data to vehicles. The system is part of the fast-growing connected mobility market, where vehicles increasingly rely on software and live data.

The announcement came after Italy used its “golden powers” law last month to settle a governance dispute involving Sinochem, Pirelli’s biggest shareholder with a 34.1% stake.

The dispute centered on fears that Pirelli could face restrictions under U.S. rules targeting Chinese technology in the automotive industry.

Rising US investment and industrial capex

Pirelli presented its Cyber Tyre technology during the SelectUSA Investment Summit organized by the U.S. Commerce Department.

The company said more details about its American expansion and future industrial capex plans will be announced after development plans for the Georgia plant are finalised.

The Georgia facility already produces premium tyres and includes a research and development center. It is currently Pirelli’s only manufacturing plant in the United States.

Despite the importance of the American market, the factory only meets around 5% of U.S. demand, even though the country generates more than 20% of Pirelli’s total global revenue.

Pirelli North America CEO Claudio Zanardo said the investment reflects the company’s effort to strengthen its innovation and manufacturing presence in the United States.

Automotive technology and cybersecurity concerns

The expansion also signals that U.S. officials may now be more comfortable with Pirelli producing technology-heavy products locally despite the company’s Chinese shareholder structure.

Citi analysts said the project shows the Department of Commerce appears more open to Pirelli investing and manufacturing advanced products in America.

Demand for digital vehicle systems and automotive technology continues to grow across the U.S. auto market as carmakers push deeper into smart mobility and software-driven transport systems.

At the same time, governments are increasing scrutiny over cybersecurity regulations tied to connected vehicles and foreign-linked technology providers.

For Pirelli, manufacturing Cyber Tyres in America may help the company expand in one of its biggest markets while reducing political and regulatory risks linked to Chinese ownership.

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