Pirelli delays board meeting amid reports of tensions with Chinese stakeholders

Milan, Italy – Pirelli & C. SpA has postponed its board of directors meeting by one day "for reasons of an organizational nature."

The meeting, originally scheduled for 26 March, has been moved to 27 March, Pirelli said, without providing further details.

The announcement follows media reports that Pirelli has asked its key stakeholder Sinochem to reduce its stake in the Italian tire company.

Chinese group Sinochem is currently Pirelli’s largest shareholder, holding a 37% stake in the company.

According to press reports, the request is linked to concerns that US policies could hinder Pirelli’s investments in the country due to ties with Chinese state-owned companies.

In recent months, Washington has intensified scrutiny of Chinese technology in the automotive sector, banning China-linked software and hardware from being used on US roads.

In June 2023, the Italian government exercised its ‘golden power’ on Pirelli to reduce major shareholder Sinochem’s influence on the tire maker.

Under the 'golden power' rule, the government can impose conditions or veto transactions, investments or corporate resolutions that could threaten Italian public interests.

At the time, the Rome government said the decision was made to protect Pirelli’s “strategic assets”, including “cyber sensors that are implanted in tires.”

The sensors, it said, are able to collect vehicle data concerning, among other things, road conditions, geolocation and the state of the infrastructures.

This information can be processed in supercomputers to create complex digital models that can be used in systems such as smart cities and digital twins, said the government.