Multinational auto giant Stellantis has reported a significant decline in both revenue and stock prices in 2024, as the automotive markets in Europe and the United States have entered a slump this year.
Italy, an important production base for Stellantis, is now facing challenges of reduced capacity and layoffs.
Stellantis' Atessa plant, located in central Italy, is the largest light commercial vehicle production base in Europe, producing around 230,000 vehicles last year.
The plant has been continuously reducing production this year, and a third of the employees have been on leave at home since June.
"From producing a maximum of 1,200 vehicles per day in the past, to producing less than 1,000 vehicles per day now, we are currently receiving guaranteed wages. This situation is expected to continue until January 2025," said an employee named Romeo Pasquarelli.
For the manufacturer's Cassino plant, also located in central Italy, it has experienced an even more severe reduction in production.
Data shows that in the first nine months of this year, the plant's output was less than 20,000 vehicles, a 50 percent decline compared to last year, marking a historic low.
In the first half of this year, Stellantis's profits were halved compared to the same period last year, with third-quarter deliveries in Europe and North America declining by 17 and 36 percent, respectively.
As a result, all of Stellantis's factories in Italy experienced reduced production this year.
At the same time, the production of passenger cars and commercial vehicles by Stellantis in Italy decreased by 40.7 percent and 10.2 percent, respectively in the Jan-Sept period this year.
Some analysts say that if Stellantis does not increase its production in Italy, some 25,000 people may face unemployment in the short term.
Stellantis announced on Dec 18 that it will increase investment in Italy in 2025, while promising that all Italian plants will have plans to produce new models by 2032.
"(Stellantis's plan) will not solve all the problems, but the Italian government places great importance on the automotive industry because it is one of the symbols of Italian manufacturing," said Mayor of Piedimonte San Germano Gioacchino Ferdinandi.
Stellantis reports disappointing 2024 performance amid European, US market slump
Stellantis reports disappointing 2024 performance amid European, US market slump
Stellantis reports disappointing 2024 performance amid European, US market slump
