Italian union FIM-CISL disclosed that production of passenger cars and vans at Stellantis’ (STLAM.MI) Italian plants plummeted by 9.8% year-on-year in the first quarter of this year, totaling 170,415 units. The automaker is currently engaged in discussions with the Italian government to reverse the ongoing decline in production, aiming to reach one million units by the end of the decade, signifying a growth of approximately 25% compared to last year.
Ferdinando Uliano, head of FIM-CISL, expressed concerns over the first-quarter data, stating that it distances Stellantis further from the ambitious one million output target. The company has outlined various factors crucial to achieving this goal, including auto purchase incentives, reduced energy expenses, and the expansion of electric vehicle charging infrastructure.
Production in Mirafiori witnessed a substantial decline of 51% in the first quarter, primarily attributed to delays in Italy’s new auto purchase incentive scheme and subdued global demand for fully-electric vehicles, particularly affecting Fiat’s 500 BEV small car production rates.
Stellantis declined to comment on the output data provided by the union, as per its usual practice. Despite the union’s projection of a full-year output of 630,000 vehicles for Stellantis in Italy in 2024, down from 751,000 last year based on first-quarter figures, this forecast does not include the impact of the government’s announced auto purchase incentives valued at approximately 950 million euros ($1 billion) for 2024, expected to take effect this quarter.
