Pirelli has formally declared it is no longer controlled by Sinochem, its largest shareholder, citing Italy’s "golden power" legislation as the basis for the move. The decision aims to ease regulatory barriers as the tyre manufacturer seeks to expand its presence in the United States.
Tensions between Pirelli's Chinese and Italian stakeholders have mounted over the company's direction, particularly regarding access to strategic international markets. The U.S. has introduced stringent regulations restricting Chinese-owned firms from participating in automotive technologies, including connected vehicles — a segment where Pirelli's Cyber Tyre technology plays a key role.
Italy’s intervention in 2023, under laws protecting assets deemed of strategic importance, limited Sinochem's influence over Pirelli’s governance. In a board vote held on Monday, nine of fifteen directors supported a resolution confirming that Sinochem no longer exerts control over the company.
Notably, Camfin, Pirelli’s second-largest shareholder, and board members representing institutional investors, supported the move. Although some Chinese-appointed directors opposed the decision, including Chairman Jiao Jian, two Italian directors appointed by Sinochem itself also voted in favour.
Sinochem, which maintains a 37% ownership stake, has publicly opposed the decision and hinted at possible legal action, although it has not detailed its next steps.
The U.S. government has set timelines to ban hardware and software from Chinese-controlled companies in connected vehicle systems — with software restrictions beginning in the 2027 model year and hardware bans by 2029. Given Pirelli’s development of Cyber Tyres capable of transmitting real-time data, aligning its governance with American regulations is critical.
Pirelli recently paused additional U.S. investment projects, citing concerns tied to Sinochem’s ownership. Monday’s resolution represents what the company calls "a first, but not decisive" step towards meeting regulatory expectations and safeguarding future growth opportunities in North America.
Pirelli's governance shift underscores the growing complexity surrounding connected tyre technologies and international regulatory compliance. As tyre manufacturers integrate more digital features, governance structures and ownership transparency are becoming as vital as product innovation itself.
Tagged with: Pirelli, Sinochem, US tyre market, connected tyres, Cyber Tyres, tyre industry governance, EV tyres, smart tyres
Sign up for our weekly briefing on key developments across the sector.
