The Italian automotive industry group FIM-CISL has reported that Stellantis is expected to reduce its vehicle production in Italy to below 500,000 units this year, down from 751,000 units in 2023. This reduction is primarily due to continued weak market demand, especially in the electric vehicle segment.
FIM-CISL leader Ferdinando Uliano warned that if current trends persist into the fourth quarter, the annual production of cars could fall below 300,000 units, with van production around 200,000 units. These figures fall significantly short of Stellantis's target, which is currently under discussion with the Italian government, to produce 1 million passenger and commercial vehicles annually in Italy by 2030. This situation further heightens industry concerns regarding structural overcapacity among European car manufacturers.
In response to these challenges, Stellantis highlighted the complex scenario facing the automobile market, particularly in Italy. Factors such as high energy and labor costs exacerbate the situation, and a comprehensive reevaluation of Italian industrial policy is deemed crucial for achieving proposed goals. Stellantis CEO Carlos Tavares is set to address the Italian parliamentary committee on the company's production operations in Italy.
Production at Stellantis's Mirafiori plant in Turin plummeted by 68% over the first nine months of this year compared to the previous year. The plant, which has repeatedly halted production of the Fiat 500 electric vehicles, plans to remain closed until November 1.
