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The
strike, called by the sector’s three main unions, comes as
tensions rise between global automaker Stellantis and the
Italian far-right government, which accuses the car-making giant
of relocating assembly plants to low-cost countries.
Stellantis, the world’s fourth largest automaker, is under
pressure globally to provide clarity about its future production
plans as it faces growing competition and financial strains.
The multinational group, which was created in 2021 from the
merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop
in output at most of its Italian plants in the first half of
2024. Over the past 17 years, the carmaker has slashed its
Italian production by nearly 70%.
CEO Carlos Tavares has recently blamed EU carbon emission rules
for raising production costs, suggesting that the group may be
forced to close some assembly plants to face competition from
China. He said he “could not rule out” job cuts, reiterating a
need for additional state incentives to spur demand for electric
cars.
Stellantis, which makes Jeep and Chrysler vehicles, has been in
the spotlight following a profit warning in which it said it
expected to finish the year with a loss of up to 10 billion
euros ($11.2 billion).
Tavares has also been under fire from U.S. dealers and the
United Auto Workers union after a dismal financial performance
this year, after being caught off guard by too many high-priced
vehicles on dealer lots. He has been trying to cut costs by
delaying factory openings, laying off union workers and offering
buyouts to salaried employees.
The group in September announced that it was looking for a
successor for 66-year-old Tavares as part of a planned
leadership change. Tavares’ five-year contract was a little over
a year from its expiration date in 2026, but the company hinted
at the time it was possible he might remain in the job beyond
that.
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