De Tomaso will finally shut down

It has taken only a few days since we reported that the Italian marque was using its last breath to sell itself for its administrators to admit there was no other option. De Tomaso’s attempt at a comeback has failed spectacularly and, as a result, the company will have to close. But this is nothing new in the industry, since the number of problems it had been dragging along nearly rivals those of Saab.

The latest news said that a Chinese investment group called Hoytrok had confirmed it would contribute seventy million euros to finance its acquisition from Gianmario Rossignolo, the current owner. But, just as happened with offers from other buyers, it never materialised. Nor did the regional government of Piedmont or the municipal government of Grugliasco, where the De Tomaso factory is located, deliver on their promise to provide eleven million in aid.

However, the lack of money will have very serious consequences beyond the demise of the famous Italian brand. The unions representing its employees, which until recently were helping to find a company that would rescue them, have now declared all-out war. Workers have gone many months without seeing so much as a cent of their wages, and there is no sign that protests will improve their situation.

Their anger reached such a point that one of them, Giacomo Ricaldone, chained himself to the gate of Gianmario Rossignolo’s home to demand the money he is owed. The other 1,157 employees of De Tomaso find themselves in a similar situation. Clearly, this is yet another reminder that reviving a car manufacturer, however small, is no game: it can only be done if there are genuinely long-term resources to sustain it.

Source | Autoplus