Stellantis Confirms No Plant Closures or Mass Redundancies in Italy

ROME (Reuters) – Stellantis (NYSE:STLA) has announced it does not plan to close plants or make mass redundancies in Italy. This statement was made by an executive during talks organized by the Italian government to address concerns surrounding the country's car industry.

Industry Minister Adolfo Urso hosted the meeting in Rome, attended by industry representatives and trade unions. The Italian auto industry is currently facing challenges, including falling production rates and idle plants, with Stellantis' brands—Fiat (BIT:STLAM), Alfa Romeo, and Lancia—experiencing declining sales.

Italy's human resources manager, Giuseppe Manca, emphasized that Stellantis has no intention of closing any plants or enacting collective layoffs.

The automaker is dealing with industry-wide issues such as reduced demand for high-priced electric vehicles and competition from China. Additionally, Stellantis is confronting excessive U.S. inventories, prompting a revision of profit and cash-flow forecasts.

Though Stellantis is the only significant automaker in Italy, its production is diminishing. The FIM-CISL union recently predicted a fall in Italian vehicle production to under 500,000 units this year, marking the lowest output since 1958.

A trade union source indicated that Stellantis is likely to suspend production again at the historic Mirafiori factory in Turin, known for producing the electric Fiat 500 city car and two Maserati sports cars.

During the meeting, Urso revealed that the government would revise plans to cut approximately 4.6 billion euros ($4.86 billion) in funds allocated for the automotive industry from 2025 to 2030, a move prompted by significant backlash from unions and business lobbyists.

Rome plans to restore around 200 million euros for 2025, according to Italy's largest trade union, CGIl.

Gianluca Ficco of the UILM union criticized the government for not following up on previously agreed proposals to rejuvenate the auto industry, stating, "In practice, the ministry has stopped talks for almost a year, letting the situation plummet."

($1 = 0.9462 euros)