According to Reuters, on October 2, the Italian automotive industry union (FIM-CISL) announced that due to persistently weak market demand, particularly for electric vehicles, Stellantis's car production in Italy is expected to decline from 751,000 units in 2023 to below 500,000 units this year.
FIM-CISL leader Ferdinando Uliano stated, "If the trends from the third quarter continue into the fourth quarter, the production situation will become more severe," predicting that passenger car production for the year will fall below 300,000 units, with commercial vehicle production around 200,000 units.
The report indicates that this forecast reflects a production level for Stellantis in Italy that is significantly below the targets being discussed with the Italian government, which aim for the annual production of 1 million passenger and commercial vehicles by around 2030. Additionally, this forecast heightens concerns in the industry about a structural overcapacity among European automotive manufacturers. Last month, the region's largest automaker, Volkswagen Group, stated that a decline in car sales has led to overcapacity at its factories, potentially resulting in the closure of some German plants.
Stellantis released a statement saying that the automotive market faces a complex situation, particularly in Italy, where high energy and labor costs exacerbate the issues. A comprehensive re-evaluation of Italian industrial policy is crucial for achieving the proposed outcomes. The company's CEO, Carlos Tavares, is scheduled to address the Italian parliamentary committee next weekend regarding Stellantis's production activities in Italy.
In the first nine months of this year, production at Stellantis's Mirafiori plant in Turin has plummeted by 68% year-on-year. The plant has already experienced multiple shutdowns of the Fiat 500 electric vehicle this year, with current plans to halt production until November 1.
