Pirelli has been warned by the US that sales of vehicles fitted with its Cyber Tyre technology, which have data-collecting technology, could be restricted in the near future. The reasoning for the restriction is down to concerns over the influence of Pirelli's largest shareholder, Sinochem, which is based in China and has a 37% stake in the company. Thus far, Pirelli has declined to comment on the situation.
Pirelli has developed technology for its Cyber Tyres, which can collect and transfer data in real-time to the vehicle using them. But, due to the US tightening restrictions around Chinese software and hardware in the automotive industry, this technology will soon pose a problem. US software prohibitions are supposed to take effect in 2027, while hardware prohibitions should take effect in 2029.
The tyre manufacturer, based in Milan, Italy, was notified of the potential restrictions on April 25 by a letter from the Commerce Department's Bureau of Industry and Security. The letter was sent in response to a request for an advisory opinion by Pirelli and notified the company that the technology would probably need specific authorization to sell in the US, which Pirelli could apply for.
The potential loss in earnings has led Pirelli's two largest investors to enter a dispute.
Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, is Pirelli's second-largest investor and is debating Sinochem over the tiremaker's governance. Sinochem's position is making it more difficult for Pirelli to expand its position in the US, and North America currently makes up around 25% of the company's revenue. So the argument could be made that Sinochem is making it more difficult for Pirelli to expand and thus working against the shareholders' best interests.
Pirelli's CEO, Andrea Casaluci, recently had an interview with the Italian daily newspaper, Corriere della Sera, and said the company is in a risky situation because Sinochem rejected a proposal by Pirelli to solve its governance issues.
