Italy's auto industry on the brink as production declines
- Stellantis's vehicle production in Italy fell by 41% in the first nine months of 2024, raising job security concerns.
- The decline is attributed to reduced demand for electric vehicles, increased competition, and high energy costs.
- Protests are planned in Rome as workers express fears of job losses and factory shutdowns, threatening the industry's future.
Italy's automotive industry is facing a critical situation due to a significant drop in production, as revealed by Stellantis, the country's largest automaker. In the first nine months of 2024, Stellantis's passenger vehicle output in Italy decreased by 41%, raising alarms about potential job losses within the sector. This decline comes amidst increasing challenges such as a slump in electric vehicle demand, heightened competition from Chinese manufacturers, and soaring energy prices. The production outlook for the year has worsened, with estimates indicating a fall to around 500,000 units from approximately 750,000 in 2023. These figures highlight the difficulties that many smaller car suppliers in Italy face as they grapple with low output volumes and the risk of closure. In response to the growing concerns, workers from Stellantis are set to participate in protests in Rome, reflecting widespread discontent over job security. This protest has garnered attention from international unions, with representatives from the US and France joining Italian workers to express solidarity against job relocations to lower-cost countries like Mexico. The situation has escalated tensions between Stellantis and the Italian government, as CEO Carlos Tavares's strategy to cut costs has resulted in factory shutdowns, including the Mirafiori plant that produces the electric Fiat 500. If production levels do not improve, experts warn that the future of Italy's automotive sector may be at stake.