Stellantis’ Italy output could drop by a third without EV demand boost: union

The future of automaker Stellantis’ production in Italy is uncertain, with the possibility of a significant drop in output looming if government incentives fail to boost demand, especially for electric vehicles. The FIM-CISL union has warned that output could decrease by around a third this year, potentially falling to just over 500,000 vehicles from 751,000 last year.

The Italian government introduced a new incentive scheme earlier this year to support the purchase of electric, hybrid, and less polluting petrol vehicles. However, the impact of these measures on output volumes has not yet been seen, according to FIM-CISL’s head Ferdinando Uliano.

Stellantis, on the other hand, remains optimistic about reaching its target of producing 1 million vehicles in Italy by 2030, despite the challenging market conditions. The automaker acknowledges the difficulties in the current market situation, particularly for EVs, but is committed to working towards this shared ambition with the Italian government.

The output decline in the first half of the year can be attributed in part to strong comparable figures from the previous year, when Stellantis was recovering from semiconductor shortages. However, there is hope for a potential boost in production with the introduction of new models at the Melfi plant in southern Italy in the coming years.

Stellantis plans to start production of five new mid-sized models for brands like Jeep and Lancia at the Melfi plant between next year and 2026, with the first new DS car expected to roll off the production line in the first quarter of 2025.

As the automotive industry continues to navigate challenges and transitions towards electrification, the future of Stellantis’ production in Italy remains uncertain but full of potential. Stay tuned for updates on how the automaker and the Italian government work together to drive growth and innovation in the sector.