Pirelli Blocks Cyber Tyre Spin-Off Amid China Rift

Pirelli’s board has rejected proposals to separate its Cyber Tyre business, ruling out both a spin-off and segregation of the unit. Directors voted 9–5 against the move, backing chief executive Andrea Casaluci’s assessment that the technology must remain embedded in the group’s structure.

The vote reflects a split at the top of the Italian tyre maker. Five Chinese‑appointed board members – Chen Aihua, Zhang Haitao, Chen Qian, Fan Xiaohua and Tang Grace – opposed management’s recommendation, while a majority sided with the view that the unit should stay integrated.

Beijing‑controlled Sinochem is Pirelli’s largest shareholder with a 34.1% stake. Camfin, linked to Italian businessman Marco Tronchetti Provera, holds 25% and has signalled plans to increase its holding. Camfin has warned that having a Chinese company as the main shareholder works against US expansion amid tensions over advanced technology.

In its conclusions, the board said splitting off Cyber Tyre would be impractical and harmful, citing risks to Pirelli’s integrated business model, competitiveness, cost base and financial strength. Executives stressed that the automotive industry is being reshaped by software‑defined vehicles and autonomous systems, which require tighter links between tyres, cars and road infrastructure.

Pirelli’s Cyber Tyre platform combines hardware and software to send real‑time data to vehicle systems. The company said the technology has already been adopted by several high‑end manufacturers, with additional agreements under discussion.

The platform is also intended to interface with transport networks to support services such as smart‑road management and monitoring. Pirelli said agreements are in place with Italy’s Apulia Region, Movyon – part of the Autostrade per l’Italia group – and road operator Anas.

Management told directors that fragmenting Cyber Tyre activities would restrict access to patents transferred to any standalone entity, slow innovation and duplicate operating structures. According to Pirelli, this would destroy value rather than unlock it.

The board also heard that a separation would not resolve constraints imposed by US legislation. Pirelli argued that keeping Cyber Tyre inside the group preserves economies of scale, protects its technology portfolio and better supports the company’s financial profile.

Separately, Pirelli disclosed that shareholders Camfin and MTP & C. have notified Italy’s Prime Minister’s office under the Golden Power Decree after deciding not to renew their shareholder pact with Sinochem. The current agreement expires on 18 May 2026.

The pact, in force from 19 May 2023, was signed in May 2022 by Camfin, MTP & C. and several Chinese entities: China National Tire & Rubber Corporation, China National Chemical Corporation, CNRC International Limited, Fourteen Sundew and Marco Polo International Italy.

CNRC has made a separate filing to the Prime Minister’s office, confirming the non‑renewal and outlining proposals for a possible segregation of the Cyber Tyre business and changes to board nomination rules. The notifications bring the Italian government formally into a governance reshaping process at a company deemed strategically important.