Stellantis Italy Production Hits 68-Year Low in 2024

Stellantis saw its Italian vehicle production plummet by 37% in 2024. The carmaker’s output in Italy dropped to just 475,090 vehicles, a sharp decline from the 751,384 units produced in 2023. This is the country’s lowest production level in 68 years, especially driven by a dramatic 46% fall in car manufacturing.

The numbers reflect the broader struggles Stellantis is facing, including weak demand for fully electric vehicles (EVs), regulatory uncertainty, and fierce competition from China. The company’s manufacturing facilities in Italy are dealing with overcapacity, leading Stellantis to rely on state-funded temporary layoff programs to manage workforce levels.

FIM-CISL, the Italian trade union, expressed particular concern over the drop in production at Stellantis’ Mirafiori plant in Turin, which saw a 70% decrease last year. The Maserati plant in Modena experienced even worse conditions, with production down by 79%. FIM-CISL union leader Ferdinando Uliano has called for a clear plan to address the issues at Maserati, noting the importance of these plants in Italy’s “Motor Valley.”

The company has presented a plan to boost production, but the increase isn’t expected until 2026 when new models will be introduced. In the meantime, Stellantis is navigating a tough market with sluggish sales, particularly for EVs, which are supposed to be a key part of its future.

Despite these setbacks, Stellantis has committed to a €2 billion (or about $2.1 billion) investment in Italy, which will be directed towards producing new models at some of its Italian plants in 2025. This investment aims to reinvigorate the company’s operations in Italy and restore production levels.

Unions are also pressuring the European Commission, with a protest planned for February 5, 2025, just ahead of the introduction of the EU’s new carbon emission targets for the automotive sector. They are calling for a review of these targets, which could place additional strain on manufacturers already dealing with economic challenges.

Source: Reuters