Workers in Italy's automotive sector are set to go on strike on Oct. 18, as announced by the main metalworkers unions. The strike is in response to the declining output from Stellantis, the largest carmaker in the country. Alongside the strike, the unions have called for a national demonstration in Rome on the same day.
Stellantis, formed in 2021 from the merger of Fiat-Chrysler with PSA Peugeot, has experienced a significant decrease in production at most of its Italian plants during the first half of 2024, according to data from the FIM-CISL union. Projections indicate that Stellantis is expected to produce just over half a million vehicles in Italy for the full year, a notable drop from the 751,000 produced in 2023. Over the past 17 years, the carmaker has reduced its Italian production by nearly 70%.
The company, known for brands like Jeep and Ram trucks, is currently in search of a new CEO to replace Carlos Tavares as part of a routine leadership succession plan. Tavares, who oversaw the merger of PSA Peugeot and Fiat-Chrysler, has faced criticism from U.S. dealers and the United Auto Workers union following a disappointing financial performance in the first half of the year. Stellantis' North American operations, previously a key profit center, have encountered challenges this year amidst broader market shifts.
In Italy, Stellantis has been engaged in discussions with the right-wing government for several months regarding plans to boost production in the country. However, as of now, no agreement has been reached between the parties.
