Stellantis Promises No Plant Closures or Job Cuts in Italy

Stellantis, the parent company of major Italian brands such as Fiat, Alfa Romeo, and Lancia, has pledged not to close any of its plants or lay off workers in Italy. This reassurance came during talks organized by Italy’s government to address concerns about the struggling automotive sector.

The discussions, held in Rome with Industry Minister Adolfo Urso, union representatives, and industry leaders, focused on the future of the country’s automotive industry, which has seen a decline in production and sales in recent years.

Stellantis’ Commitment to Italy’s Workforce – 

Giuseppe Manca, Stellantis’ Human Resources Manager for Italy, addressed fears of job cuts and plant closures, stating, “Stellantis does not intend to close any plants in Italy, just as it has no intention of making collective redundancies.” This announcement comes at a crucial time when Italy’s car manufacturing output is experiencing significant challenges.

Industry Challenges and Competition – 

Stellantis, which operates as Italy’s largest automaker, is facing numerous global pressures. The demand for expensive electric vehicles (EVs) has softened, while competition from Chinese automakers is growing. Additionally, Stellantis is contending with excess inventories in the U.S. market, which have forced the company to adjust its profit and cash flow forecasts. Despite these difficulties, Stellantis’ commitment to its Italian workforce and operations is a positive sign for the country’s struggling car industry.

Declining Auto Production in Italy – 

The Italian automotive industry is currently experiencing its worst production figures in decades, with annual output expected to fall below 500,000 units for the first time since 1958. Stellantis’ Mirafiori Assembly Plant in Turin, which produces the Fiat 500e and the Maserati GT sports car (GranTurismo and GranCabrio), has also faced production pauses. These issues have raised concerns among unions, who are worried about the industry’s long-term health.

Italian Government Adjusts Automotive Support Budget –

During the talks, Minister Urso addressed the government’s planned reductions in funding for Italy’s automotive industry, initially set to cut €4.6 billion ($4.86 billion) between 2025 and 2030. Following feedback from unions and business groups, the government agreed to reinstate €200 million for 2025, easing concerns about the financial support needed to sustain the industry.

Union Concerns Over Lack of Action – 

Despite the government’s pledge to adjust funding, some unions, such as the UILM, expressed dissatisfaction with the lack of progress on previous proposals to revitalize Italy’s automotive sector. Gianluca Ficco of the UILM union stated that the government had effectively halted talks for nearly a year, which worsened the situation.

Source: Reuters