Saturday, July 27, 2024

Stellantis Plant in Turin Operates on Reduced Shifts Amid Weak Demand for Electric Models

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The Stellantis plant in Mirafiori, near Turin, is continuing to operate on a one-shift basis instead of the usual two shifts due to sluggish demand for the electric Fiat 500 and Maserati models produced there. This reduced production volume is expected to continue until 20 April, according to a report by Automotive News Europa, citing a statement from the Italian trade union UILM.

A spokesperson for Stellantis reportedly confirmed the continuation of the single-shift operation. Short-time working at the plant has been in effect since 12 February, initially planned to last until 3 March, then extended to 30 March, and now further extended until 20 April, affecting more than 2,200 employees. In the current week, the plant even experienced a complete shutdown.

See also: Stellantis Commits to Future Production of Fiat 500 BEV in Turin Amid Speculation

One factor contributing to the weak demand for the electric Fiat 500 could be the anticipated purchase subsidy in Italy, which has not yet been made available. In early February, the government announced plans to allocate nearly one billion euros in funding for “clean vehicles” for 2024, with the eco-bonus potentially reaching up to 13,750 euros in extreme cases. Prospective buyers are holding off on purchasing EVs, awaiting the availability of the purchase premium.

To address the capacity utilization issue at Mirafiori, Stellantis is reportedly contemplating the production of up to 150,000 low-cost electric cars annually in Turin from 2026 or 2027, in partnership with Chinese automaker Leapmotor. These vehicles would then be distributed through Stellantis’ European dealers, potentially boosting the plant’s output and addressing the market demand for affordable electric vehicles.

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