Stellantis Commits to Maintaining Jobs, Vehicle Production in Italy

Italian auto worker jobs and vehicle production plants with Stellantis brands are safe, the automaker group promises Italy’s government.

The pledge comes in response to a meeting hosted by Italy’s industry minister Adolfo Urso in Rome with industry representatives and trade unions to address declining vehicle output leading to production being halted at key plants, Reuters reports.

Stellantis has seen sales of its Italian brands, including Fiat, Alfa Romeo and Lancia, remain sluggish across its European markets.

The automaker is also facing low demand for more expensive battery-electric vehicles and competition from China, while in the U.S. it is battling to shift bloated inventories that have led it to cut profit and cash-flow forecasts.

Italy depends on Stellantis as its only mass-market automaker making slowing sales and reduced vehicle production a serious economic issue. Last month the FIM-CISL union predicted Italian annual vehicle production would fall to under 500,000 units this year, the lowest since 1958.

Trade union sources expect Stellantis to again pause production at the historic Mirafiori factory in Fiat's hometown of Turin, where the electric Fiat e500 city car and two Maserati sports cars are made.

However, the group’s Italy human resources manager, Giuseppe Manca, says in a company statement, “Stellantis does not intend to close any plants in Italy, just as it has no intention of making collective redundancies.”

During the meeting, Urso said the government would row back on plans to cut by some €4.6 billion ($4.86 billion) in funds set aside to support the country's automotive industry between 2025 and 2030, following widespread criticism from unions and business lobbies.

Rome intends to restore some €200 million ($211 million) for 2025, Italy's largest trade union CGIl claims.