The Italian government is mulling over taking over defunct auto brands owned by Stellantis and offering them to Chinese companies to attract them to set up factories in the European country, according to Reuters.

The plan would involve the brands including Innocenti and Autobianchi, both shut down in the 1990s, reported Reuters citing local newspaper Il Sole 24 Ore on Friday.

Innocenti was famous in the 1960s and 1970s for producing an Italian version of the British marque MINI, before it was taken over by Fiat, now part of Stellantis. Former Fiat unit Autobianchi produced upmarket city cars such as the A112 and Y10.

The Italian industry ministry, which according to the report is studying the move, was not available for comment, said Reuters. Stellantis told Reuters it had seen the media reports but had not been informed by the government about any such plans.

The newspaper said the Italian government's plan would be made possible under a law passed in December and a draft implementing decree, under examination by the Court of Auditors, concerning brands that have been unused for at least five years.

Once under government control, they could be given to "companies, including foreign ones, that intend to invest in Italy or move to Italy manufacturing activities located abroad," the law says.

Prime Minister Giorgia Meloni's government has for months been at loggerheads with Fiat-parent Stellantis, accusing the automaker of neglecting its historic production bases in Italy.

It is engaged in talks with the group, the country's sole major automaker, to boost Italian production to 1 million vehicles per year, but also said it wants to expand the domestic industry by attracting a Chinese automaker to Italy.

On Thursday, Fiat unveiled at its historic Turin headquarters its Serbian-made Panda model and celebrated its 125th anniversary. Italian industry minister Adolfo Urso, who attended the event, again urged Stellantis to relaunch its manufacturing activities in Italy.