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Stellantis Cuts 10,000 Italian Jobs Since 2020

Union Says Automaker’s Production Has More Than Halved Since 2004

Photo of Robert S. Miller Robert S. Miller Send an email October 5, 2025
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Alfa Romeo Giulia production at the Cassino Assembly Plant. (Stellantis).

Stellantis has reportedly eliminated nearly 10,000 jobs in Italy over the past four years, according to a new report from the Fiom-Cgil union. The announcement highlights the challenges the automaker is facing as it adapts to shifting demand, the transition to electrification, and growing pressure from Chinese automakers.

The union says Stellantis’ Italian workforce has dropped from 37,288 employees at the end of 2020 to 27,632 by the close of 2024. That’s a steep reduction in just four years. Meanwhile, overall vehicle production in Italy—including cars, vans, and small trucks—has been on a long downward slide, dropping from about one million units in 2004 to fewer than 480,000 in 2024.

2026 Fiat 500 Ibrida (Hybrid) at the Mirafiori Assembly Plant. (FIAT).

The report, titled “Stellantis: The Great Escape,” paints a grim picture of the automaker’s position in its home market. In addition to job cuts, Stellantis has steadily lost share in Italy and across Europe. The company’s market share in Italy fell below 30% last year, down from more than 35% just two years earlier.

Unions say Stellantis’ shrinking footprint reflects broader industry problems: higher interest rates, weaker car demand, and the company’s slow response to rising EV and hybrid competition. For now, Stellantis hasn’t commented on the claims.

DS N°8 ÉTOILE AWD at the Melfi Assembly Plant. (Stellantis).

Still, the automaker insists it’s committed to Italy. One bright spot could be the upcoming hybrid version of the Fiat 500. Production is set to launch later this year at the historic Mirafiori Assembly Plant in Turin. Stellantis hopes that refreshed models like this can boost sales and stabilize its Italian operations after years of decline.

Whether one new model can compensate for years of job losses and declining production remains to be seen. For now, Stellantis faces the difficult task of balancing cost cuts with the need to keep Italy at the heart of its European business.

Source: Reuters

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Photo of Robert S. Miller Robert S. Miller Send an email October 5, 2025
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Photo of Robert S. Miller

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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Avatar of patfromigh patfromigh 3 weeks ago #1

Fiat is in big trouble in Europe. The brand bet heavily on battery electric and it has come back to bite them. Sales of the 500e died with the government rebates in the EU countries, while Abarth sales came to a screeching halt when the brand went all EV. The Grande Panda was farmed out to Serbia where Stellantis is paying slave wages. There has been labor unrest over this. On top of that, all the newer Stellantis models use the same PSA based engines which are often combined with the Punch transmission. The Fiat 600 is built in Eastern Europe and uses drive train parts from that same region. Stellantis seems to be winding down the Italian sourced GME production in favor of the engines from a French origin. No wonder the Italian workers are mad.

The tariff situation here complicates things and threatens Fiat and Alfa sales which are alarmingly low to begin with.

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Avatar of bill burke bill burke 3 weeks ago #2

When you bet on the wrong horse you lose. It will take time to recoup losses. A tell tale sign auto executives ignored was the need for cash incentives to move those electrics, not smart. Pure hybrids will make up the bulk of alternative powered vehicles and most BEVs will go away or be order only products that loose money in a fast shrinking market. Off to the soap factory for those electric nags.

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Avatar of patfromigh patfromigh 3 weeks ago #3

The EU and Canada are still going ahead on their EV mandates. Since the US market share for Fiat and Alfa is so miniscule, we won't help much in this situation. The Fiat brand won't survive in the USA by selling only the 500e, there needs to be other models offered here as well. The Fiat 500 hybrid is an encouraging sign because it demonstrates the design of this new Fiat 500 generation is flexible enough to allow for gas or electric. Unfortunately the hybrid drive train in the new 500 is too weak for our market conditions.

The solution is to use American built engines and transmissions for both the 500 and Grande Panda. In the case of the 500 domestic engines might bring some tariff relief. The Grande Panda should be built here since it could share a platform with a Jeep Renegade replacement, as well as some other Panda based vehicles having the potential to be sold as a Dodge or Chrysler product. Building the products here allows for more domestication to please American audiences. The Dodge Hornet confused people and the price cuts harmed the Alfa Romeo Tonale it was based upon.

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