MILAN – Stellantis (NYSE: STLA) chief Carlos Tavares will address an Italian parliamentary committee next week on the prospects for the carmaker’s production in Italy, the company said on Tuesday, after it warned about poor demand for electric vehicles.
The hearing will take place on October 11, Stellantis said in a statement, after announcing it had extended the suspension of production of its Fiat 500 electric city car until November 1 due to weak orders.
The car is made at Stellantis’ historic Mirafiori plant in Turin, northern Italy. The company previously said production of the model had been stopped until October 11.
Tavares will be able “to provide the most exhaustive picture of the group’s automotive production in Italy,” the statement said. “The complex international and European situation of the automotive sector requires rapid responses,” it added.
A global slowdown in sales of electric vehicles (EVs), partly due to diverging policies on green incentives, has forced automakers worldwide to adjust their EV plans.
In an earlier statement on Tuesday, Stellantis (NYSE: STLA) said it had told trade unions the electric car market in Europe is “in deep trouble.”
Despite the temporary halt in output, Stellantis reiterated its plan to invest 100 million euros ($110.93 million) in its Fiat 500e with a high-performance battery. Additionally, from early 2006, it will begin producing the new 500 Hybrid.
Earlier this year Italy launched a $1 billion plan to help drivers switch to cleaner vehicles, with subsidies for purchases of fully-electric cars.
($1 = 0.9015 euros)
(Source: Reuters)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
