Italy’s Industry Minister, Adolfo Urso, announced on Tuesday a deal that will prevent 249 layoffs at suppliers to Stellantis (STLAM.MI), marking a potential step toward improving the strained relationship between the carmaker and the Italian government. The deal comes amid growing tension over Stellantis’ operations in Italy, with accusations from Italian politicians that Fiat’s parent company, led by CEO Carlos Tavares, has neglected historic manufacturing sites in the country and moved production abroad.
Minister Urso brokered the deal after a top Stellantis manager revealed that the company would present a clear plan to revitalize output in Italy. The plan is expected to be discussed at a meeting on December 17, which Urso will host to address the future of the Italian automotive industry. The agreement will see Stellantis extend its contract with logistics supplier Trasnova for an additional year, preventing 97 layoffs at the supplier by the end of the month.
The deal also saves an additional 152 jobs at Trasnova’s subcontractors, Logitech and Tecnoservice, which were set to be cut at the end of the year. Urso called the agreement “a concrete sign of responsibility at a crucial time for the automotive sector” and expressed hope that it would lead to a productive relationship with Stellantis moving forward.
In response, Stellantis emphasized its commitment to safeguarding jobs while navigating the challenges of the electric transition. The company stated that it would continue its efforts to protect Italian jobs, despite the ongoing transformation of the automotive industry.
Union representatives, however, urged that the 12-month reprieve should be used to find sustainable, long-term solutions for Italy’s auto sector, with further discussions expected to take place during next week’s meeting hosted by Minister Urso.
