Sweden had one of the best pre-war light tanks
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Stridvagn L-60 M/38
Torsion bar suspension
8 tons
Later versions were uparmored and upgunned
Italy's L6/40 also used torsion bars
Problem with both, for economic reasons, didn't plan on 30 ton tanks being a requirement, and didn't have the excess Industry to repurpose for doing that when the War started.
Both could observe what was happening on the battlefield.
Just like the USA did a lot of rethinking about the utility of the Machine Gun Cathedral M2 Medium after the Fall of France
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And then decided that while the hull and running gear of that was very good, the upperworks wasn't for how armored combat turned out to be.
Now Italy neutral?
Would observe the same thing, that the German tanks worked really well against the French, and the Polish campaign wasn't a fluke, and the M11/39 wouldn't be enough rather than finding out against the British the hard way.
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For starters, would need to have a hull big enough for a turret with 50mm AT or 75mm howitzer armament, rather than sponson
11 tons wouldn't be enough for all that, and not being in an actual shooting war, not as much pressure to make the above into the interim13 ton M13/40 for immediate use in active combat theaters in North Africa and the Balkans
The German have a 25 ton medium with a 50mm gun and 30mm of armor, with 300 horsepower.
That's what they need to match for 1940, before they could worry about doing 33 ton M4 Shermans with 50-65mm armor and 75mm guns and 400HP for 1941
The Pesante 26 was designed in 1940 to be a 'Heavy' of 26 tons, to use a 330HP V-12 diesel engine that didn't yet exist,
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then redesigned in 1941 to incorporate more slope for the armor
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Being Neutral, they follow this path, but have more options, like getting 'gifts' from both sides to sway their politics.
Lean towards Allies?
They get Allied Engines.
Lean German? get Maybachs
Now in a bidding War, the Allies can offer more to Italy, mostly in being able to supply Oil and Coal, that Germany can't match, but if are looking for a higher HP, can look to the USA. Kermath who just lost contracts to Hall-Scott and to Packard in 1942-3
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