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News

U.S. Diesel Prices Hit Record $5.85 as Middle East Conflict Sends Fuel and Transportation Costs Higher

Diesel prices in the United States have surged to a record $5.85 per gallon, adding another layer of pressure to an already strained global transportation industry as conflict in the Middle East disrupts energy markets and threatens fuel supplies.

The latest spike is particularly significant for the automotive and freight industries. Unlike gasoline, diesel is deeply intertwined with the movement of goods across the global economy. Trucks, delivery vans, trains and commercial ships all rely heavily on diesel, meaning higher fuel prices can quickly translate into higher transportation costs—and ultimately more expensive products for consumers.

According to AAA data cited in the supplied report, the average U.S. gasoline price has climbed to approximately $4.15 per gallon, compared with $2.19 before the war. Diesel, however, has experienced an even sharper increase, rising from roughly $3.75 per gallon in February to $5.85 by September 4, 2026.

That represents an increase of nearly 56 percent in just six months.

Diesel Prices Reach Levels Not Seen Since 2022

The current U.S. diesel price represents the highest level since the early stages of the Russia-Ukraine war.

The Associated Press previously reported that diesel averaged $5.82 per gallon in June 2022, when governments around the world were introducing sanctions against Russia, one of the world’s largest oil producers.

In nominal terms, today’s $5.85 price is therefore slightly higher than the 2022 peak.

However, diesel has been considerably more expensive when adjusted for inflation. During the 2008 financial crisis, the market price reached approximately $4.74 per gallon. Adjusted to today’s dollars, that would equate to roughly $7.20 per gallon.

That puts the current situation into perspective: while today’s diesel price is historically high, it is not unprecedented when measured in real terms.

Why Diesel Prices Matter So Much to the Automotive Industry

For drivers of diesel-powered passenger cars, a sharp increase at the pump is immediately noticeable. For the commercial transportation industry, however, the consequences are much broader.

Diesel remains a crucial source of energy for heavy-duty trucks and a significant portion of medium-duty commercial vehicles. Those vehicles are responsible for moving enormous quantities of food, consumer products, construction materials and industrial goods across the United States.

A truck doesn’t simply consume diesel to move from one destination to another. Its fuel bill becomes part of the cost of delivering every pallet, package or product it carries.

When diesel prices increase dramatically, transportation companies face several choices: absorb the additional expense, reduce operating margins, increase freight rates or pass the cost directly to customers.

Increasingly, businesses are choosing the latter options.

That could eventually make higher diesel prices visible far beyond the gas station.

Higher Diesel Costs Could Make Everyday Products More Expensive

The effects of record diesel prices extend well beyond trucking.

A product ordered online may travel through several diesel-powered vehicles before reaching the customer’s front door. Food delivered to a supermarket can travel hundreds or thousands of miles by truck. Construction materials, manufactured goods and agricultural products also depend heavily on diesel-powered transportation.

That means rising diesel prices can become an inflationary force throughout the economy.

Higher freight rates can increase the cost of ecommerce deliveries, groceries, manufactured products and raw materials. Businesses that rely on regular deliveries may also face higher operating expenses, which can eventually be reflected in retail prices.

In other words, consumers don’t necessarily have to own a diesel vehicle to feel the impact of record diesel prices.

Strait of Hormuz Remains a Major Concern

One of the biggest sources of uncertainty is the Strait of Hormuz, a strategically critical maritime passage connecting the Persian Gulf with the Gulf of Oman.

A significant amount of energy transported from the Middle East passes through the waterway, making any disruption potentially consequential for global oil and fuel markets.

Continued attacks and instability in the region have increased concerns about the security of energy shipments. Even when physical supplies remain available, the threat of disruption can increase the risk premium attached to oil and refined fuel prices.

That uncertainty is particularly problematic for businesses that need to plan fuel purchases months in advance.

Russia Adds Another Complication for Diesel Markets

The situation is being compounded by developments in Russia, according to the supplied report.

Russia has extended restrictions on diesel exports while Ukrainian drone attacks on Russian oil refineries have reportedly added further pressure to regional refining capacity.

The combination of geopolitical instability in the Middle East, uncertainty surrounding shipping routes and disruption to refining infrastructure creates a particularly challenging environment for global diesel markets.

Diesel is a refined petroleum product, so the problem isn’t simply how much crude oil exists in the world. Refinery capacity, transportation infrastructure, shipping availability and regional supply-demand balances all influence what consumers ultimately pay at the pump.

UK Farmers Face a Diesel Price Squeeze

The impact is also being felt outside the United States.

Farmers in the United Kingdom are facing increased fuel costs at a particularly difficult time of year. Although the main harvest has been completed, agricultural operations typically rely on subsidized red diesel for machinery and other activities associated with preparing farms for the winter season.

The problem is not simply that fuel has become more expensive. The speed and volatility of the increase are making it difficult for businesses to determine when they should purchase fuel.

Alex Harrison, a fuel buyer at Fram Farmers, a farmer-owned cooperative, described the latest increase as an unexpectedly large shock, according to The Guardian.

For agricultural businesses operating on relatively tight margins, sudden fuel-price increases can have an outsized impact on profitability.

The Bigger Problem Is Uncertainty

For automakers, trucking companies, logistics operators and consumers, the most concerning aspect of the current fuel market may not be the $5.85 diesel price itself.

It’s the uncertainty surrounding what happens next.

Fuel prices can change rapidly when geopolitical events affect crude oil production, refining capacity or shipping routes. Companies operating large commercial fleets therefore face significant challenges when attempting to forecast operating costs.

That uncertainty could accelerate investment in alternative powertrains, including battery-electric trucks, hydrogen technologies and other low-carbon commercial vehicles. But those technologies cannot immediately replace the enormous existing global fleet of diesel-powered trucks, ships, trains and industrial machinery.

For the foreseeable future, diesel remains essential to global transportation.

What Record Diesel Prices Mean for Drivers

For owners of diesel-powered pickup trucks, SUVs and passenger cars, the impact is straightforward: filling the tank costs substantially more.

Drivers who use their vehicles for long-distance commuting, towing or commercial work are particularly exposed to the increase.

Fleet operators face an even bigger challenge. A company operating dozens or hundreds of vehicles can see fuel expenses rise dramatically when the price of diesel jumps by more than $2 per gallon.

That can influence everything from delivery fees and freight rates to vehicle replacement decisions.

It also provides another potential incentive for companies to improve fleet efficiency. Aerodynamic improvements, low-rolling-resistance tires, route optimization, reduced idling and more efficient diesel engines can all become financially valuable when fuel prices climb.

Could Diesel Prices Go Even Higher?

That remains one of the biggest questions facing the transportation industry.

If disruptions around the Middle East continue, the Strait of Hormuz remains under pressure and global refining capacity experiences additional problems, diesel markets could remain volatile.

Conversely, any reduction in geopolitical tensions, improvement in shipping conditions or increase in refined-fuel supply could help ease prices.

For now, however, businesses have little choice but to operate in an unusually uncertain fuel environment.

The record U.S. diesel price of $5.85 per gallon is more than a problem for diesel owners. It is a warning sign for the broader transportation economy.

As long as trucks, ships, trains and commercial vehicles continue to depend heavily on diesel, any major disruption to the global fuel market can eventually make its way into the price of almost everything that moves.

Source: Associated Press, The Guardian

News

Maserati Unveils “Luxury, Every Day” Campaign for GranTurismo, GranCabrio and Grecale

Maserati is putting a fresh spin on the meaning of luxury with its new “Luxury, every day” communications campaign, placing the latest GranTurismo, GranCabrio and Grecale at the center of a distinctly Italian interpretation of performance, elegance and everyday usability.

Rather than portraying luxury as something reserved for rare occasions, Maserati’s latest campaign argues that extraordinary experiences should be part of everyday life. The concept reflects the brand’s long-standing philosophy of “Italian Gran Turismo: Effortless Luxury Performance,” bringing together Italian design, craftsmanship, comfort and serious performance in cars designed to be driven rather than simply admired.

The campaign arrives as Maserati continues to evolve its modern lineup, with the GranTurismo, GranCabrio and Grecale representing three different interpretations of the Trident brand’s luxury performance philosophy.

Maserati Turns Luxury Into an Everyday Experience

The central idea behind “Luxury, every day” is built around a simple paradox. The campaign’s film follows four characters surrounded by valuable objects: a prestigious watch, jewelry, a bottle of Tignanello wine and an elegant suit.

Each item is admired but left unused. The characters hesitate, apparently waiting for an occasion important enough to justify enjoying something special.

Maserati then reverses that idea.

The arrival of the new Grecale, GranTurismo and GranCabrio transforms the definition of luxury. Instead of being objects saved for special occasions, the three Maserati models become everyday expressions of luxury themselves.

The message is unmistakably Italian: there does not need to be a special occasion to enjoy something extraordinary.

The characters eventually wear the clothing and jewelry, open the wine and stop postponing the experiences they have been saving for later. Maserati’s cars become the catalyst for that change, representing luxury that is designed to be experienced every day.

It is a particularly appropriate message for the GranTurismo, a name historically associated with long-distance travel, effortless speed and the ability to combine sporting performance with comfort.

The New Maserati GranTurismo Trofeo Packs 590 CV

At the heart of Maserati’s performance story remains the Nettuno V6, a powertrain developed around technology derived from motorsport.

For the new GranTurismo Trofeo and GranCabrio Trofeo, the twin-turbocharged 3.0-liter V6 Nettuno produces 590 CV and 650 Nm of torque. That combination gives the Italian grand tourer the performance expected from a Maserati bearing the Trofeo badge while maintaining the comfort and long-distance capability central to the GranTurismo concept.

The GranTurismo Trofeo can exceed 320 km/h, putting it firmly among the fastest luxury grand tourers on the market.

What makes the Nettuno particularly significant is its pre-chamber combustion technology, derived from Formula 1 development. The system is designed to improve combustion efficiency and performance while contributing to the engine’s distinctive character.

Maserati has therefore managed to preserve an important part of the traditional grand-touring formula: a powerful internal-combustion engine, effortless high-speed capability and a soundtrack that remains an integral part of the driving experience.

GranCabrio Trofeo Brings the Same Formula With an Open Roof

The GranCabrio Trofeo takes the same performance philosophy and removes the roof.

As the convertible counterpart to the GranTurismo, the GranCabrio combines open-air driving with the performance of the 590-CV Nettuno V6. It is an approach that places the car somewhere between a high-performance sports car and a luxurious long-distance cruiser.

That dual personality is central to Maserati’s identity.

The GranCabrio is not designed simply to chase lap times. Instead, it aims to deliver speed and emotion without sacrificing the refinement required for long journeys.

That balance is exactly what Maserati means by effortless performance.

New Grecale Introduces a 390-CV Nettuno V6

The Grecale brings the Nettuno engine philosophy into a more practical and versatile SUV package.

The new Grecale introduces a 390-CV V6 Nettuno, giving the luxury SUV a significant performance advantage while retaining the everyday usability expected from the segment.

Maserati says the engine delivers a benchmark power-to-weight ratio in its category, while its technology and character connect the Grecale to the company’s motorsport heritage.

The engine’s responsive power delivery is intended to make the Grecale engaging in a wide range of driving conditions, reinforcing the idea behind the “Luxury, every day” campaign.

For customers who want Maserati performance without committing to an exclusively combustion-powered vehicle, the Grecale Folgore offers a different interpretation of the same philosophy.

The electric Grecale Folgore can deliver a range of up to 580 km, demonstrating Maserati’s intention to interpret performance through multiple powertrain technologies.

Shark-Nose Front End Gives Maserati’s New Models a Stronger Identity

The latest Maserati models also introduce a more assertive visual identity.

One of the most noticeable changes is the redesigned front end, characterized by what Maserati describes as a shark-nose effect. The new design gives the cars a more horizontal and aggressive appearance while maintaining the restrained elegance expected from an Italian luxury brand.

The design language represents another stage in Maserati Centro Stile’s ongoing evolution.

According to Maserati, the development of this sharper front-end treatment began with the MCXtrema track car. The more horizontal and assertive design was subsequently adapted for road-going models, appearing on the GT2 Stradale and later being refined through the MCPURA.

The philosophy has now reached the new GranTurismo, GranCabrio and Grecale.

Rather than relying on excessive visual drama, Maserati is using proportions, surfacing and carefully controlled details to create a stronger identity.

That approach is consistent with the brand’s broader definition of Italian luxury: distinctive without being unnecessarily extravagant.

Maserati Updates the Interior With More Focus on the Driver

The exterior changes are accompanied by a series of updates inside the cabin.

One of the most distinctive details is the redesigned Maserati digital clock. The unit now features a genuine metal crown and an octagonal design, giving what could otherwise be a conventional digital display a more tactile and luxurious character.

The clock also reinforces the relationship between the driver and the vehicle, functioning as part of Maserati’s broader driver-car interface.

Another important update is the new PRND selector. Its three-dimensional controls are finished in metal and feature integrated backlighting, with Maserati aiming to make gear selection more intuitive and pleasant to operate.

The steering wheel has also been redesigned with inspiration from Maserati’s racing cars.

The result is an interior that places greater emphasis on the driver while retaining the sophisticated atmosphere expected of a modern Italian luxury vehicle.

Maserati’s Formula 1 Technology Meets Everyday Driving

The Nettuno V6 is one of the clearest examples of Maserati’s attempt to connect road cars with motorsport technology.

Pre-chamber combustion technology, developed from racing experience, gives the engine a technical identity that goes beyond simply producing high output.

But the broader significance of the latest Maserati lineup is that performance is no longer presented as something that exists separately from comfort and luxury.

The GranTurismo can travel at more than 320 km/h while remaining a long-distance grand tourer. The GranCabrio combines open-air luxury with supercar-like performance. The Grecale delivers V6 power in an SUV format, while the Grecale Folgore demonstrates that Maserati’s performance philosophy can also be applied to electric propulsion.

That versatility is at the heart of the new campaign.

Trieste Provides the Backdrop for Maserati’s New Chapter

The “Luxury, every day” film concludes in Piazza Unità d’Italia in Trieste, providing an appropriately dramatic setting for Maserati’s latest campaign.

The city combines historic architecture with views toward the Mediterranean and the distinctive landscape of the Karst Plateau. It also recently hosted Maserati’s international Media Drive, where more than 100 journalists from around the world had the opportunity to drive the new GranTurismo, GranCabrio and Grecale.

The location reinforces Maserati’s connection with Italy while providing a natural environment in which the cars’ combination of elegance, performance and long-distance capability can be demonstrated.

Maserati’s Interpretation of Modern Italian Luxury

Cristiano Fiorio, Maserati Chief Marketing Officer and BOTTEGAFUORISERIE General Manager, says the campaign is intended to reaffirm the characteristics that have historically defined the Trident brand.

Italian design, elegance, craftsmanship and performance remain at the center of Maserati’s identity, but the company is presenting them through a more contemporary interpretation of luxury.

The philosophy is deliberately different from the idea that luxury must always be extravagant or inaccessible.

For Maserati, luxury can instead be subtle, authentic and integrated into everyday life.

That philosophy is particularly relevant to the GranTurismo. The car’s very name refers to a tradition of traveling quickly and comfortably across long distances, making it fundamentally different from a machine designed exclusively for occasional performance driving.

The GranCabrio extends that concept into open-air motoring, while the Grecale brings the same combination of performance and sophistication into the SUV segment.

A New Maserati Campaign Built Around Emotion

Produced by creative agency Migrante, the “Luxury, every day” campaign uses a combination of cinematic imagery, human reactions and automotive performance to communicate its central idea.

The soundtrack was created by composer Flavio Ibba, adding another layer to a film that gradually increases in rhythm and intensity as the Maserati vehicles take over the narrative.

The cars are not presented simply as luxury products. Instead, they are positioned as objects that encourage people to enjoy the present rather than constantly waiting for the perfect moment.

That idea ultimately connects the campaign with Maserati’s heritage.

For more than a century, the Trident brand has attempted to combine Italian craftsmanship with performance, creating cars that are capable of transforming an ordinary journey into something memorable.

The latest GranTurismo, GranCabrio and Grecale continue that philosophy with modern technology, sharper styling and a broader range of performance options.

The result is Maserati’s latest definition of “Luxury, every day”: luxury that does not need to wait for a special occasion.

And with a 590-CV Nettuno V6, a 390-CV Grecale, a 580-km-range Grecale Folgore and a new generation of more assertive Maserati design, there is little reason for the driving experience itself to be postponed.

Source: Stellantis

News

Mercedes-Benz Could Shut Down a German Factory—And Hungary May Be the Winner

Mercedes-Benz is reportedly putting increasing pressure on its German production operations as the automaker looks for ways to reduce costs and improve factory efficiency. According to a report from German business weekly WirtschaftsWoche, company management has allegedly warned employee representatives that a German factory could eventually become unnecessary if labor costs cannot be significantly reduced.

The reported warning comes amid increasingly difficult negotiations between Mercedes-Benz management and Germany’s powerful works councils. At the center of the dispute are labor costs, working hours, employee benefits and the competitiveness of Mercedes’ German manufacturing operations.

The stakes are particularly high because Mercedes-Benz has substantial production capacity elsewhere in Europe, including its factory in Kecskemét, Hungary, where production costs are considerably lower than in Germany.

Mercedes-Benz Reportedly Threatens New Eastern European Factory

According to WirtschaftsWoche, citing several sources within Mercedes-Benz, a member of the company’s management board allegedly told workers’ representatives that the company could build a new factory in Eastern Europe if German labor costs are not reduced substantially.

Under that scenario, one of Mercedes-Benz’s existing German production facilities could eventually become unnecessary.

There has been no official decision to close a German factory, and it remains unclear which location could potentially be affected. Neither Mercedes-Benz management nor its supervisory board has reportedly made a final decision.

Mercedes-Benz has also declined to comment on the specific allegations, saying that it generally does not comment on ongoing negotiations with employee representatives.

Nevertheless, the reported warning highlights a broader issue facing Germany’s automotive industry: whether manufacturing vehicles in the country remains economically competitive compared with lower-cost production locations elsewhere in Europe.

German Mercedes Workers Cost More Than Three Times as Much Per Hour

One of the most striking elements of the dispute is the difference in hourly labor costs between Mercedes-Benz’s Hungarian and German operations.

Mercedes-Benz’s Kecskemét plant reportedly has an hourly wage of around €15.60, compared with approximately €49.50 for workers in Germany, according to the figures cited in the source material.

That does not mean the total cost of manufacturing a vehicle is simply 3.2 times higher in Germany. Factory economics also depend on productivity, automation, energy prices, logistics, infrastructure, taxes, supply chains and the complexity of the vehicles being produced.

Mercedes-Benz itself has reportedly said that so-called factory costs in Hungary are around 70 percent lower than in Germany.

Those factory costs include more than employee wages. They can encompass labor, energy, infrastructure, logistics and maintenance, making the difference particularly important when an automaker is deciding where to allocate future production investments.

Kecskemét Could Become Increasingly Important to Mercedes-Benz

Mercedes-Benz already operates one of its most important European production facilities in Kecskemét, Hungary.

The plant has recently undergone a major expansion that reportedly doubled its potential production capacity to approximately 400,000 vehicles annually. More than 5,000 employees work at the facility.

The Kecskemét factory currently produces models including the Mercedes-Benz GLB and the electric C-Class. A smaller version of the G-Class is also expected to join the production lineup.

The expansion gives Mercedes-Benz an important alternative to its higher-cost German manufacturing sites. If the company decides to increase production in lower-cost European locations, Kecskemét would be an obvious candidate to play a larger role.

That does not necessarily mean Mercedes-Benz intends to abandon Germany. The company’s German factories remain strategically important for vehicle production, engineering, technology and the broader Mercedes-Benz industrial network.

However, the cost difference makes future investment decisions increasingly difficult.

Mercedes-Benz Wants Employees to Work Five More Hours

The reported conflict is not limited to wages.

One of management’s most controversial proposals reportedly involves increasing working hours by five hours per week without increasing monthly salaries.

In practical terms, employees would work longer for the same basic pay. From the company’s perspective, the proposal would reduce the effective labor cost per hour while increasing available production capacity.

For employees and works councils, however, the proposal represents a significant change to working conditions.

The discussions reportedly also include a review of additional compensation and benefits.

Christmas bonuses, severance-related payments and other special benefits could potentially be reduced or changed. One special payment has already reportedly been postponed, while employee profit-sharing payments could also be reduced or temporarily suspended.

Works councils have rejected the proposals, with sources reportedly describing the company’s approach as excessive pressure and even “blackmail.”

Mercedes-Benz Says German Factories Have Too Much Capacity

The cost dispute comes as Mercedes-Benz evaluates the future capacity of its German manufacturing network.

In June, company management reportedly sent a letter to employees warning that the production capacity of German factories was “significantly above demand.”

Management also reportedly pointed to high sickness absence rates and fewer annual working days compared with some international locations.

According to the company’s assessment, Mercedes-Benz employs more people per vehicle produced in Germany than other manufacturers.

The conclusion is straightforward from a business perspective: German plants need to become more productive and less expensive if they are to remain competitive for future investments.

Management has therefore reportedly argued that labor costs need to be reduced throughout the organization, including development, sales, administration and manufacturing.

The most direct message is that employees should work more for the same salary.

Why Germany Is Becoming More Difficult for Automakers

The Mercedes-Benz dispute is part of a much larger problem affecting Germany’s automotive industry.

For decades, Germany’s car industry benefited from a combination of highly skilled workers, strong engineering capabilities, premium vehicle production and a sophisticated industrial supply chain.

But the economics of global vehicle manufacturing have changed dramatically.

Automakers are now dealing with higher energy costs, intense competition from Chinese manufacturers, weaker demand in some markets and enormous investment requirements for electric vehicles, batteries, software and new vehicle platforms.

At the same time, manufacturers are under pressure to keep prices competitive.

That creates a difficult equation for German automakers. Producing vehicles in Germany offers major advantages, including access to engineering expertise, established suppliers and a highly skilled workforce. But those advantages come with significantly higher labor and operating costs.

Lower-cost production locations in Central and Eastern Europe can therefore become increasingly attractive when manufacturers plan new capacity.

Volkswagen Has Already Shown How Serious the Problem Is

Mercedes-Benz’s reported internal pressure stands in contrast to the situation at Volkswagen, where factory closures, job reductions and extensive cost-cutting measures have already become a major part of the company’s restructuring discussions.

Mercedes-Benz has generally been viewed as being in a stronger financial and operational position than Volkswagen.

That makes the reported developments particularly significant.

If even a premium manufacturer such as Mercedes-Benz is considering whether its German factories are cost-competitive enough for future investment, the pressure on Germany’s traditional automotive manufacturing model is becoming increasingly difficult to ignore.

The question is no longer simply how many cars German factories can build.

It is how cheaply and flexibly they can build them compared with plants elsewhere in Europe and around the world.

Will Mercedes-Benz Move More Production to Hungary?

At this stage, there is no confirmed decision to close a Mercedes-Benz factory in Germany or build another plant in Eastern Europe.

However, the company’s existing investment in Hungary demonstrates that Mercedes-Benz already has a substantial lower-cost manufacturing alternative within its European production network.

The Kecskemét plant’s expanded capacity could give the automaker considerable flexibility when deciding where future models should be manufactured.

If German labor costs remain significantly higher and domestic factories continue to operate below their potential capacity, the economic argument for directing additional production toward Hungary or other lower-cost locations could become stronger.

For Mercedes-Benz employees in Germany, that creates an uncomfortable situation.

The future of their jobs may increasingly depend not only on the success of individual vehicle models, but also on whether German factories can demonstrate that their higher costs are justified by greater productivity, quality, flexibility and strategic value.

The Future of German Car Manufacturing Is at Stake

The Mercedes-Benz dispute illustrates a fundamental challenge facing the German automotive industry.

High wages, strong employee protections and extensive worker participation have historically been central components of Germany’s industrial model. They helped create a highly skilled manufacturing workforce and supported the country’s position as one of the world’s most important automotive production centers.

But global competition is forcing manufacturers to reconsider the economics of that model.

Chinese automakers are expanding rapidly, electric vehicles require enormous investments and European manufacturers are searching for ways to lower costs without sacrificing quality.

Mercedes-Benz now appears to be facing the same fundamental question as many of its German competitors:

How much more can it afford to pay to build a vehicle in Germany?

If the answer becomes “too much,” future investment could increasingly move toward lower-cost European production sites.

For now, no German Mercedes-Benz factory has been officially selected for closure. But the reported threat is a clear warning that Germany’s position at the heart of European car manufacturing can no longer be taken for granted.

The next round of negotiations between Mercedes-Benz management and its works councils could therefore have implications far beyond working hours and employee benefits. It could help determine where the next generation of Mercedes-Benz vehicles is built—and whether Germany remains at the center of the company’s manufacturing strategy.

Source: WirtschaftsWoche