The long-simmering crisis at the world’s fourth-largest carmaker has now reached a critical point, with lawmakers from the opposition and ruling parties set to question CEO Carlos Tavares on 11 October.
Stellantis CEO Carlos Tavares will appear before the Italian Chamber of Deputies’ Commission for Productive Activities, Commerce, and Tourism and is expected to deliver a comprehensive report on the company’s automotive production in Italy.
Stellantis confirmed the meeting in a statement, expressing its “spirit of collaboration” and willingness to engage in dialogue with Italian institutions.
“Stellantis’ commitment to open and constructive communication with institutions remains unwavering. This includes our ongoing relationship with the Ministry of Enterprise and Made in Italy, led by Minister Adolfo Urso, and the Italian parliament,” the statement read.
The hearing was called in response to a cross-party parliamentary motion calling on Stellantis to clarify its commitments, particularly regarding job losses and production cuts.
The hearing follows a year of increasing tension between Stellantis and the Italian government. In August, Urso threatened to withhold recovery fund money from the carmaker unless it provided clear answers about delayed projects and investments. Two weeks ago, the Italian government announced that it had decided to redirect funds initially earmarked for Stellantis to other projects.
Stellantis, formed by the merger of Fiat Chrysler and France’s PSA Group, is the last major car manufacturer still operating in Italy. It oversees historic brands such as Fiat, Alfa Romeo, Lancia, and Maserati. Only Lamborghini and Ferrari remain independent or foreign-owned.
Urso spent last week in Brussels seeking support for his proposal to bring forward the EU car emissions legislation revision from 2026 to 2025. The move aims to tackle growing competition from Chinese electric vehicles, contributing to the current crisis facing European carmakers such as Stellantis.
On Tuesday, the company informed labour unions that the production halt of the electric Fiat 500 at the Mirafiori plant in Turin, originally scheduled to end on 11 October, would be extended until 1 November.
The company cited weak demand for electric vehicles in Europe, although the Fiat 500e accounted for 40% of sales in the city car EV segment in the first eight months of the year.
Unions are increasingly concerned about rising layoffs and falling production, with a protest planned for 18 October.
“The level of job insecurity is unacceptable, and the entire automotive sector is on the brink of collapse. On 18 October, we’ll be in Rome to raise awareness of this emergency, which threatens to destroy one of Italy’s key industrial sectors,” said Luigi Paone of the Uilm union.
“The situation in Turin is growing more alarming, and this latest shutdown makes government intervention even more urgent to ensure stability for Italian plants,” he added.
To add to the company’s woes, Stellantis slashed its forecasts for 2024 on Monday, sending its share price down 12% on the Milan stock exchange to a two-year low.
Meanwhile, rumours of a possible merger with Renault and BMW have resurfaced. Although Stellantis chairman John Elkann dismissed similar speculation earlier this year, reports suggest that merger talks with Renault are back on the table as the companies face increasing pressure from Chinese electric vehicle manufacturers. The talks are now said to include BMW.
(Alessia Peretti | Euractiv.it)
Source: euractiv.com
