Italy’s ruling parties want Stellantis to explain low production volumes
Politicians have repeatedly criticised Stellantis for its falling automotive production in the country
11 October 2024 - 10:42
byAgency Staff
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Stellantis CEO Carlos Tavares is due to appear on Friday before the Economic Activities Committee of the Italian parliament in Rome to discuss the country's automotive industry. Tavares. Picture: REUTERS
Italy’s ruling parties called on the government to summon senior Stellantis management to clarify their plans for the country, a request that could increase friction between Rome and the Fiat carmaker, a document seen by Reuters on Thursday showed.
The request comes as Stellantis CEO Carlos Tavares faces pressure to revive the group’s results, after a profit warning it announced last week and a forecast for a cash burn of up to €10bn (R191.1bn) in the full year 2024.
Politicians in Italy have repeatedly criticised Stellantis, whose other brands include Alfa Romeo, for its falling automotive production in the country.
The document from the ruling coalition parties, which includes several requests to the government for information about the state of the national automotive industry, also calls for Stellantis to provide precise figures about job cuts at its Italian plants through voluntary redundancy.
Stellantis was not available for comment.
Tavares is already due to appear on Friday before the economic activities committee of the Italian parliament in Rome to discuss the country’s automotive industry.
The company’s output in Italy is expected to fall below 500,000 vehicles in 2024, from 751,000 in 2023 due to a mix of soft market demand, especially for electric vehicles (EVs), and factory reconfiguration before new model launches.
The carmaker and the government have been discussing for more than a year a plan to restore national output to 1-million units by the end of this decade, a level last reached in 2017, but they never reached an agreement.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
International News
Italy’s ruling parties want Stellantis to explain low production volumes
Politicians have repeatedly criticised Stellantis for its falling automotive production in the country
Italy’s ruling parties called on the government to summon senior Stellantis management to clarify their plans for the country, a request that could increase friction between Rome and the Fiat carmaker, a document seen by Reuters on Thursday showed.
The request comes as Stellantis CEO Carlos Tavares faces pressure to revive the group’s results, after a profit warning it announced last week and a forecast for a cash burn of up to €10bn (R191.1bn) in the full year 2024.
Politicians in Italy have repeatedly criticised Stellantis, whose other brands include Alfa Romeo, for its falling automotive production in the country.
The document from the ruling coalition parties, which includes several requests to the government for information about the state of the national automotive industry, also calls for Stellantis to provide precise figures about job cuts at its Italian plants through voluntary redundancy.
Stellantis was not available for comment.
Tavares is already due to appear on Friday before the economic activities committee of the Italian parliament in Rome to discuss the country’s automotive industry.
The company’s output in Italy is expected to fall below 500,000 vehicles in 2024, from 751,000 in 2023 due to a mix of soft market demand, especially for electric vehicles (EVs), and factory reconfiguration before new model launches.
The carmaker and the government have been discussing for more than a year a plan to restore national output to 1-million units by the end of this decade, a level last reached in 2017, but they never reached an agreement.
Reuters
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