Stellantis (STLA, Financial) announced that it will temporarily halt activities at several assembly and engine plants in Italy next month in response to challenging market conditions. The affected plants include those producing the Fiat Panda. The planned stoppage is scheduled for specific days between November 11 and 29 and will impact the Pomigliano d'Arco, Termoli, and Pratola Serra plants. The company has informed labor unions about these plans.
Stellantis encounters industry-wide challenges, such as sluggish demand for more expensive electric vehicles and competition from China. Additionally, the company is grappling with excess inventory issues in the United States, prompting a reduction in profit and cash flow forecasts.
In Italy, Stellantis has already paused production at the historic Mirafiori plant in Turin, which manufactures the electric Fiat 500 and two Maserati sports car models, until November 1. Despite these challenges, Stellantis remains committed to maintaining the continuity of its operations in Italy, though it acknowledges the path ahead is difficult and requires tough decisions without easy solutions.
