Stellantis' Vehicle Production in Italy Plummets to Lowest Level Since 1956

On Friday, Stellantis, the automotive giant formed by the merger of Fiat Chrysler and PSA-Peugeot in 2021, reported a significant decline in vehicle production in Italy. According to union data, production decreased by 37% last year, with a notable 46% drop in car production, marking the lowest level since 1956. The production of new commercial vehicles also fell by 17%.

The company is grappling with an overcapacity issue in Italy and is resorting to state-supported temporary layoff programs to manage the situation. In December, Stellantis announced a strategy aimed at increasing production volumes. However, the anticipated rise in production is not expected to coincide with the introduction of new vehicle models until 2026.

The FIM-CISL union highlighted that Stellantis produced a total of 475,090 vehicles in Italy last year, significantly lower than the 751,384 vehicles produced in 2023. This decline reflects broader challenges faced by the automotive industry, including supply chain disruptions and shifting market demands.

Stellantis has yet to make a public statement regarding the impact of this production decline on its financial performance or market position. The company's plan to revitalize its production operations in Italy is expected to play a critical role in its future growth, as it aims to boost production figures alongside the launch of new models.