MILAN – Stellantis (NYSE: STLA) will next month suspend activities at some assembly and engine plants in Italy, including for the Fiat Panda city car, in response to tough market conditions, the automaker said on Wednesday.
The planned stoppages will affect the Pomigliano d’Arco, Termoli, and Pratola Serra factories for several days during the November 11-29 period, Stellantis Italy said in a statement, adding it had informed trade unions.
Stellantis is facing industry-wide challenges such as low demand for more expensive electric vehicles and competition from China. It is also grappling with excess U.S. inventories that have led it to cut profit and cash-flow forecasts.
In Italy, it has already suspended production at the historic Mirafiori plant in Turin, which makes the electric Fiat 500 city car and two Maserati sports cars, until November 1.
In its statement on Wednesday, the Franco-Italian-American group said it was determined to “ensure the continuity” of its Italian operations. However, it noted that it was facing “a challenging path requiring difficult choices and offering no easy solutions.”
(Source: Reuters)
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.
