Italian car industry employees are set to strike on October 18 due to decreased production levels at Stellantis

In Italy, workers within the automotive industry are set to strike on October 18, as announced by the main metalworkers unions, to express their dissatisfaction with the decrease in production at Stellantis, the country’s largest car manufacturer. Additionally, a national demonstration in Rome has been called for on the same day.

Stellantis, formed in 2021 through the merger of Fiat-Chrysler with PSA Peugeot, experienced a significant decline in output across most of its Italian factories during the first half of 2024, according to information from the FIM-CISL union. The union has projected a production of slightly over half a million vehicles by Stellantis in Italy for the entire year, representing a decrease from 751,000 in 2023. Over the past 17 years, the struggling company has reduced its Italian production by almost 70%.

The company, which includes brands like Jeep and Ram trucks, is currently in the process of searching for a new CEO to take over from Carlos Tavares as part of its regular leadership succession plan. There is a possibility that Tavares might prolong his tenure. Tavares, in charge during the merger of PSA Peugeot and Fiat-Chrysler, has faced criticism from U.S. dealers and the United Auto Workers union following a poor financial performance in the first half of this year.

While Stellantis previously relied on its North American operations for substantial profits, the company has encountered difficulties in that region this year due to broader market shifts. Discussions have been ongoing between Stellantis and the Italian government for months concerning plans to boost production in Italy, but no consensus has been reached thus far.

In a statement released later on Tuesday, Stellantis reiterated its determination to discover collaborative solutions to tackle the challenges in the automotive sector. The group emphasized the urgency of the energy transition and the necessity for substantial measures to reduce production costs, stating that cooperation with trade unions and the Italian government is essential to finding effective and sustainable solutions for the future.