ROME – On Wednesday, Stellantis (NYSE: STLA) announced new temporary stoppages at two of its plants in southern Italy, while the Rome government called on the automaker to commit to new investments in the country.
In two separate statements, the company said it informed unions about a pause in production at the Termoli engine plant on December 16-22 and at the Cassino auto factory on November 29. During the stoppages, workers will be furloughed.
The automaker, whose Italian brands include Fiat and Alfa Romeo, said it was determined to “ensure the continuity” of its Italian operations, but noted it was facing “a challenging path requiring difficult choices and offering no easy solutions.”
Stellantis (NYSE: STLA) is facing industry-wide challenges such as low demand for more expensive electric cars and competition from China. It is also grappling with bloated inventories that have led it to cut profit and cash-flow forecasts.
In Italy, it has repeatedly paused production this year, including at its historic Mirafiori plant in Turin, but in talks last week with the government and unions, it pledged not to close factories in the country or make mass redundancies.
During those talks, the government asked Stellantis to present a new “convincing and sustainable” plan of investments for Italy by December 16, Industry Minister Adolfo Urso said in a parliamentary question time session.
Stellantis was urged to clarify its intentions over a stalled battery-making plant and commit to making in Italy a new small car to help support the Italian auto components sector, Urso added.
Highlighting the issues facing the industry, Ford said on Wednesday it would cut around 14% of its European workforce, blaming its losses in recent years on weak demand for electric vehicles, poor government support for the shift to EVs, and competition from subsidized Chinese rivals.
