Folks, I don't think Germany is that strong in 1.6.0. (I refuse to update until they would create another large patch, or DLC, or at least reports about new patch will not be more sane.) French can do number on Germany when AI is lucky. (When you play even smaller member of Axis than Italy, it could be bit problem. Even thought Italy is threatened on so many fronts, until closing Mediterranean, it's questionable if neutral Italy will not help Germany MUCH more.)
I just tried Italy, and it was first time I tried Italy in 1.5.0+ when Germany actually absorbed Austria peacefully. It was clusterfuck.
First time I played Italy Yugoslavia guarantee wasn't lifted before I finished fabrication. As a small consequence, the war didn't end by conquering Yugoslavia. Because declaring at Greece would open another can of worms, I delayed declaring until my units arrive to Greek border. 5 hour before declaring France guaranteed.
As a consequence, I had quite a while a cold war, while I should prepare troops for fight in Lybia.
Then Germany started to pick war with France, probably by trying to conquer Luxembourg. Luckily it managed to join with Austria, thus it could bypass Suddetes, and attack from Austria directly. Meanwhile Romania joined allies and declared at Germany for no reason whatever. France surprise joined alies too, and declared war on me, the same with Greece. Which solved my problem how to declare on Greece. Greece was quickly reinforced by UK troops who was interested in Feta Cheese. Thus I had divisions in wrong position, didn't have time to make sufficient reserves of fuel, or even construct fuel storages. Now I was forced to quick research refineries, mostly for synthetic rubber to be able to build withing next half year 200 additional fighters, and 600 naval bombers to protect against France and UK naval domination. US said it will not bother with Europe idiocy, declared neutrality, and decided it would handle them later.
Thus at least there were no US naval invasions.
Naval battles with French fleet were:
First battle. I lost 33 DD, they lost 1 CL. I should wait 3 months to prepare more naval bombers. Green crews didn't help either. On the positive side I managed to save all BB.
Second battle, after several months of repair. (Actually I thought it was much worse, but it wasn't that bad.) I did lost several light cruisers, but all BB survived, and ONE French BB was finished off by CA.
Then improved naval bombers finally come online, and started to dominate in areas under fighter cover.
Then I managed to find French fleet in port, and had some naval strikes with new naval bombers with experienced crews from hunting submarines.
Current Italian two CV are half year sitting in port, because Italian designers didn't manage to develop carrier capable planes before CV were finished. I think another two CV would arrive before they would manufacture enough planes to actually fit all 4 CV. On the positive side Italy would soon have a tank division that uses something more powerful than light tank. Probably just one however, it would have hard time to support it.
When Germany was doing its stuff with Northern France front, namely staring at each other over Maginot line. Until they fabricated at Belgium, or was it Holland. I send hordes of CAS and fighters on Greece front, and after horrible slog, I managed to get to Athens and cut off defending army. Then I was wondering what Germans are doing, they probably are inside France already. Well, Germans lost Wilmhaven, and several cities on theirs territory and were defending on river line. French, UK, and Holland were able to push them back. It was obvious they are in trouble, and I either do something quickly, or they would be in even larger problems. Because war with Romania, and Hungary ended. Fascist Hungary joined allies, just because. I had 24 divisions in the area for recovery, which were send to Germany to help hold the line. Because they were dug in like a fuck and helping Germany with theirs ofensive would be incredibly manpower costly, and they had QUITE a lot of airforce in the area. I decided to try southern offensive. Send CAS from Greece, and fighters from Greece to be able to contest air in Southern France during offensive, and pushed through mountains.
230K Italian casualties later Italian army pushed through mountains, reached plains, and cut enemy armies by rushing to coast, and creating defensive line on river to protect attack from west.
(For some reason Germans had bright idea to increase defensive line by attacking Switzerland. I think the deployment of Italian divisions on North front seduced French they should move some units from South fortifications, not many.) BTW I had yellow air during that push.
Before I'd properly replenish equipment and modernize infantry weapons, Germany would likely declare on... Russia. On the positive side for Poland, it was not divided, it was conquered by Russia, and now has more welfare oriented government.
BTW that event that creates Vichi France punishes Italy that managed to conquer Southern France and Paris hard.
Meanwhile in Asia. Japan joined Kodoha faction, and ... declared war on China. They hated commies for some reason. Then they managed to get into fight with natinalists as well, and chinese made some united front that was. Then there was news that China joined China. And when Japan was in fight with China. Quing China backstabbed Japan thus Japan was in fight with China, China, and China. Ultimatelly they defeated China and China, and because people thought Quing china are morons, thus didn't wanted to fight, Quing China ran out of manpower. Russia suspiciously looks like it wants to declare war against China Japan.