Stellantis Holds Ground: Italian Plants Safe Amid Industry Challenges

Stellantis reassures no plant closures or mass redundancies in Italy despite industry struggles like low electric vehicle demand and competition from China. Italian government talks address automotive concerns, with trade unions advocating for additional support. Plans to cut funding face criticism, with potential restoration discussions ongoing.

Stellantis has announced that it will not close any of its plants or proceed with mass redundancies in Italy, despite growing pressures within the automotive industry. This statement was made public during a government-organized meeting aimed at addressing the challenges faced by Italy's car sector.

The meeting in Rome was led by Industry Minister Adolfo Urso and included representatives from the automotive industry and trade unions. The Italian auto industry has been experiencing a decline in production and plant utilization, with decreasing sales from Stellantis' Italian brands such as Fiat, Alfa Romeo, and Lancia. The firm's human resources manager, Giuseppe Manca, assured that there would be no plant closures or collective layoffs.

Stellantis is contending with industry challenges such as weak demand for expensive electric vehicles and mounting competition from China. It is also facing increased U.S. inventory levels, prompting reduced profit and cash-flow forecasts. Trade unions have criticized the government for not implementing prior agreements to rejuvenate the industry, and discussions are ongoing to restore some of the funding cuts proposed for 2025-2030.

(With inputs from agencies.)