Stellantis NV will reduce production in Italy from Dec. 2 to Jan. 5 due to declining demand for electric and luxury cars, impacting the Fiat 500 and M
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Stellantis NV is reducing output in Italy starting next week due to weak demand for the electric and luxury cars it’s producing there.
The automaker said Wednesday it will suspend production at its Mirafiori site in Turin from Dec. 2 until Jan. 5. The halt affects the battery-powered Fiat 500 as well as Maserati’s GranTurismo and GranCabrio models.
Stellantis cited waning EV sales in Europe and poor demand for luxury cars in the US and China for the move. The manufacturer is struggling with slowing and more competitive auto markets in Europe and has stopped output in Italy on several occasions this year.
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Electric vehicles account for 97% of Mirafiori’s production, Stellantis said, adding that Europe’s electric city car segment fell by more than half in the first ten month of this year compared to the same period in 2023. The company’s passenger-vehicle output in Italy slumped 41% in the first nine months of this year, fueling concerns over potential job losses.
The pullback cuts against Prime Minister Giorgia Meloni’s goal to boost auto production in Italy to 1 million vehicles by 2030. Chief Executive Officer Carlos Tavares has clashed with Rome over EV incentives and the company shifting output to lower-cost countries.
Stellantis on Wednesday said that more state funding is needed next year to help pay for redundancy measures such as temporary production stops. The company is cutting costs after a slide in profits and on Tuesday announced plans to close a van factory in Luton, England.
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The maker of Fiat and Alfa Romeo cars isn’t alone in shrinking output as demand wanes. In Germany, Volkswagen AG is pushing for unprecedented cuts at its namesake brand, including closing as many as three plants, laying off thousands of workers and cutting wages. Ford Motor Co. is also dialing back EV output in the country and eliminating 4,000 positions across the region.
Parts of the Turin complex, such as administrative offices and research sites, will remain active, Stellantis said. The site employs around 13,000 people.
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First Published Date: 28 Nov 2024, 11:33 AM IST
