Stellantis Faces Strike In Italy Over Production Decline

Metal workers at Stellantis plants in Italy are set to go on strike on October 18, 2024, as major Italian unions protest the automaker’s declining production in the country. The strike, organized by UILM, FIOM, and FIM-CISL, will include Stellantis’ local suppliers as well, aiming to highlight concerns about job security and Italy’s role in the global automotive industry.

Production at Stellantis’ Italian plants has seen a sharp decline in 2024, with an overall output drop of 25% in the first half of the year, according to data from FIM-CISL. This translates to a projected total of just over 500,000 vehicles for the full year, down from 751,000 units in 2023. The unions are worried about the long-term implications of this downturn, especially given the automaker’s reliance on furlough programs funded partly by public money to manage the production slowdown.

Rocco Palombella, Head of the UILM union, emphasized the gravity of the situation during a press conference with FIOM and FIM-CISL leaders on September 24. “The situation is bad, very bad,” Palombella said, urging both the government and Stellantis to take action to secure jobs and boost production.

The decline in production is primarily attributed to weak market demand, especially for electric vehicles (EVs). Stellantis, which owns several iconic Italian brands, including Fiat, Alfa Romeo, and Maserati, has struggled to maintain its output levels amid a challenging economic environment. As a result, many of its factories in Italy have faced repeated halts in operations over recent months.

Italy’s Prime Minister Giorgia Meloni’s government has been in talks with Stellantis to increase vehicle production to 1 million units annually by the end of the decade. However, no agreement has been reached so far. Tensions have been growing between the nationalist government and Stellantis, with the government accusing the automaker of neglecting its historical production bases in Italy.

To attract new investment, Rome has initiated talks with Chinese automakers as potential partners to complement Stellantis’ presence in the country. However, union leaders, including Palombella, have expressed skepticism about this strategy, questioning the effectiveness of asking Stellantis to ramp up production while also courting new manufacturers.

While limited to a single day, the strike reflects broader concerns about the future of Italy’s automotive sector, which remains highly dependent on Stellantis. Union leaders hope this action will prompt the automaker and the government to commit to a clearer plan for increasing production and preserving jobs.

Source: Reuters