Stellantis CEO to Meet Italian Unions Amid Slowing European Car Demand

Stellantis NV CEO Antonio Filosa is scheduled to meet with Italian labor unions on Monday to address concerns over declining demand in the European automotive market. The company, known for brands like Fiat and Alfa Romeo, has been compelled to halt production at several Italian factories due to sluggish sales.

Unions such as FIM-CISL and Fiom are seeking clarity on Stellantis’ commitment to manufacturing in Italy, particularly regarding the future of plants in Cassino and Termoli. They also demand a strategic plan for the Maserati brand, which has been underperforming in recent years.

In response to previous tensions, Stellantis pledged to revitalize Fiat production in Italy, including the development of a new model of the Fiat 500. The company also committed €2 billion in investments for 2025 to strengthen its Italian operations.

Despite these assurances, Stellantis faces challenges from increasing competition, particularly from Chinese automakers like BYD, which are offering competitively priced vehicles in the European market. The company has temporarily shut down several European sites due to low demand, impacting local suppliers. Forvia, a key supplier, reported losses amounting to “several tens of millions of euros” this year due to production stoppages.

Filosa’s recent decisions to scale back European investments and redirect $13 billion towards the U.S. market have further fueled concerns among European unions about Stellantis’ commitment to its operations in Italy.

The upcoming meeting is seen as a critical opportunity for Filosa to reassure unions and employees of Stellantis’ dedication to its Italian workforce and to outline a clear strategy for navigating the challenges in the European automotive sector.