Stellantis Faces New Strike Threats in Italy as U.S. Labor Disputes Continue

Multinational automaker Stellantis is confronting additional labor unrest, this time in Italy, as unions have announced a strike set for October 18. The announcement follows escalating tensions after U.S. unions also threatened multiple strikes against the company. On Tuesday, Italian metalworkers’ unions FIM-CISL, UILM, and FIOM revealed their plans to protest Stellantis’ declining production output and management of its Italian factories.

Data from FIM-CISL showed a 25-percent drop in output from Stellantis’ Italian plants during the first half of 2024, forecasting total production at just over 500,000 units for the year, down significantly from the 751,000 units produced in 2023. The Fiat 500e electric compact vehicle, produced at Stellantis’ Turin plant, is among the models affected by the planned strikes.

Union leaders expressed deep concern about the automaker’s performance in Italy, with UILM’s Rocco Palombella warning, “The situation is bad, very bad,” during a press conference. Stellantis’ transition to electric vehicle (EV) production has been marked by several disruptions, contributing to the unrest.

Meanwhile, across the Atlantic, Stellantis is also facing pressure from the United Auto Workers (UAW), the largest automotive union in the U.S. Last week, the UAW accused the company of unfair labor practices and threatened strikes over Stellantis’ failure to reopen a factory in Belvidere, Illinois, which was promised in a prior agreement.

Adding to the company’s challenges, Stellantis recently lost European Union funding worth $223 million for a battery production facility in Termoli, Italy, after failing to meet expectations set by the Italian government. Industry Minister Adolfo Urso had previously expressed frustration with Stellantis’ slow response to plans for reviving the nation’s auto sector.

Further complicating matters, Stellantis CEO Carlos Tavares is facing criticism from dealerships in both North America and Europe, with claims of mismanagement and high inventory levels. Despite these issues, Stellantis has started searching for a successor to Tavares, although there are no immediate plans to replace him.

Source:  Automotive News Europe