Stellantis, the multinational automotive giant, is facing a potential decline in Italian production this year as demand, particularly for electric vehicles (EVs), remains sluggish. The FIM-CISL union predicts a drop to 500,000 vehicles, down from 751,000 in 2022, significantly short of the 1 million target by 2030.
The union’s concerns stem from the government’s recently introduced purchase incentives for electric and hybrid vehicles. While the incentives were announced at the beginning of the year, they were only implemented last month, leaving their impact on production levels unclear.
“Their impact on output volumes is not yet visible,” said Ferdinando Uliano, head of FIM-CISL, presenting the union’s quarterly report on Stellantis’ production levels.
The report showed a 25% decline in output in the first half of this year, reaching 303,510 vehicles. This decline is attributed partly to strong comparable figures from the previous year, when Stellantis recovered lost production from semiconductor shortages.
“If incentives do not change the picture, at the end of the year we’ll be most likely only halfway to the one-million 2030 target,” Uliano warned.
Stellantis acknowledges the challenging market conditions in Italy and Europe, particularly affecting EV production. The company affirmed its “shared ambition” with the Italian government to reach output of 1 million vehicles in Italy by 2030.
“However, we need to overcome the uncertainties linked to the electrification process and a greater stability in demand,” the automaker said in a statement.
Despite the current challenges, Stellantis plans to introduce five new models at its Melfi plant in southern Italy between next year and 2026, potentially boosting production. The first model, a new DS car, is scheduled to begin production in the first quarter of 2025.
The future of Stellantis’ Italian production hinges on the success of government incentives and the demand for electric vehicles. The introduction of new models could provide a boost, but the overall picture remains uncertain. The company’s commitment to the one-million target by 2030 will depend on addressing these challenges and fostering a stable market for electric vehicles.