Stellantis (STLA.US) CEO to Meet Italian Unions Amid Weak European Auto Demand and Factory Shutdowns

Stock News
10/20

Stellantis (STLA.US) CEO Antonio Filosa is scheduled to meet with Italian unions on Monday. The automaker has halted production at several factories due to weak demand. Unions, including FIM-CISL and Fiom, are seeking clarification from Filosa regarding the company’s manufacturing plans in Italy. As local car production has been sluggish for an extended period, concerns are growing about the future of facilities such as Cassino and Termoli. The unions also aim to gain further insights into the company’s plans for the struggling Maserati brand. In Europe, Stellantis has temporarily closed several factories due to weak demand for certain models, resulting in a ripple effect on local suppliers. Auto parts supplier Forvia stated on Monday that its sales are facing potential losses of 「tens of millions of euros」 due to production stoppages. Filosa has reduced some of the company's European investments and pledged to invest $13 billion in the crucial U.S. market over the next four years, further raising concerns among European unions. Last year, Stellantis committed to producing a new revised Fiat 500 in Italy to mend relations with the government. Former CEO Carlos Tavares had pushed to shift production to lower-cost countries like Morocco. Shortly after Filosa took office, the company promised to invest €2 billion (approximately $2.3 billion) in Italy this year. Like its competitors, Stellantis is dealing with overcapacity issues in the European market, where Chinese automakers led by BYD are expanding their market share with competitive pricing. The company had previously pledged to place €6 billion in orders with local suppliers and guarantee that no Italian factory would be closed.

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