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The Great Italian Auto Exodus: Stellantis Production Plummets To 68-Year Low
(MENAFN- The Rio Times) Stellantis, a leading European automotive giant and the world's fourth-largest automaker, is grappling with a severe production crisis in Italy. In 2024, the company experienced a dramatic 37% decline in output, pushing car manufacturing to its lowest levels since 1956.
This steep downturn highlights deeper structural challenges within the European auto industry and reflects significant shifts in the global automotive market.
FIM-CISL union reports Stellantis produced only 475,090 vehicles in Italy last year, down from 751,384 in 2023. Car production fell by 46%, while commercial vehicle output decreased by 17%.
The Mirafiori plant in Turin saw a 70% reduction, and the Maserati facility in Modena experienced a staggering 79% decline. Several factors contribute to this downturn.
Weak demand for electric vehicles, regulatory uncertainty, and fierce competition from Chinese manufacturers all play a role. The global automotive sector also struggles with high production costs and stagnant demand in key markets.
Stellantis relies heavily on government-funded temporary layoff programs to manage excess capacity. The company aims to boost production but expects significant increases only from 2026 onwards, aligning with planned new vehicle model launches.
Stellantis' Commitment Amid European Automotive Challenges
In response, Stellanti pledged to invest €2 billion in Italian facilities in 2025 and allocate €6 billion for regional supplier purchases. The company plans to expand electric and hybrid model production and keep all Italian plants operational until 2032.
This situation reflects broader issues in the European automotive industry. EUROFER predicts a 6.5% decline in EU automotive production for 2024, with a modest 1.9% recovery expected in 2025.
Stellantis' struggles in Italy serve as a wake-up call for the entire automotive industry. The company's ability to overcome these obstacles will influence the Italian economy.
It will also shape the broader European automotive landscape. As the industry evolves, companies must find innovative solutions to remain competitive in a rapidly changing market.
This steep downturn highlights deeper structural challenges within the European auto industry and reflects significant shifts in the global automotive market.
FIM-CISL union reports Stellantis produced only 475,090 vehicles in Italy last year, down from 751,384 in 2023. Car production fell by 46%, while commercial vehicle output decreased by 17%.
The Mirafiori plant in Turin saw a 70% reduction, and the Maserati facility in Modena experienced a staggering 79% decline. Several factors contribute to this downturn.
Weak demand for electric vehicles, regulatory uncertainty, and fierce competition from Chinese manufacturers all play a role. The global automotive sector also struggles with high production costs and stagnant demand in key markets.
Stellantis relies heavily on government-funded temporary layoff programs to manage excess capacity. The company aims to boost production but expects significant increases only from 2026 onwards, aligning with planned new vehicle model launches.
Stellantis' Commitment Amid European Automotive Challenges
In response, Stellanti pledged to invest €2 billion in Italian facilities in 2025 and allocate €6 billion for regional supplier purchases. The company plans to expand electric and hybrid model production and keep all Italian plants operational until 2032.
This situation reflects broader issues in the European automotive industry. EUROFER predicts a 6.5% decline in EU automotive production for 2024, with a modest 1.9% recovery expected in 2025.
Stellantis' struggles in Italy serve as a wake-up call for the entire automotive industry. The company's ability to overcome these obstacles will influence the Italian economy.
It will also shape the broader European automotive landscape. As the industry evolves, companies must find innovative solutions to remain competitive in a rapidly changing market.
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