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Italy's ruling parties urge government to summon Stellantis to clarify plans
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Italy's ruling parties urge government to summon Stellantis to clarify plans
Oct 10, 2024 11:18 PM

ROME, Oct 10 (Reuters) - Italy's ruling parties called

on the government to summon senior Stellantis ( STLA ) management to

clarify their plans for the country, a request which could

increase friction between Rome and the Fiat automaker, a

document seen by Reuters on Thursday showed.

The request comes as Stellantis ( STLA ) CEO Carlos Tavares faces

pressure to revive the group's results, after a profit warning

it announced last week and a forecast for a cash burn of up to

10 billion euros ($10.9 billion) in the full-year 2024.

Politicians in Italy have repeatedly criticised Stellantis ( STLA ),

whose other brands include Alfa Romeo, for its falling

automotive production in the country.

The document from the ruling coalition parties, which

includes several requests to the government for information

about the state of the national automotive industry, also calls

for Stellantis ( STLA ) to provide precise figures about job cuts at its

Italian plants through voluntary redundancy.

Stellantis ( STLA ) was not available for comment.

Tavares is already due to appear on Friday before the

Economic Activities Committee of the Italian parliament in Rome

to discuss the country's automotive industry.

The company's output in Italy is expected to fall below

500,000 vehicles this year, from 751,000 in 2023 due to a mix of

soft market demand, especially for electric vehicles and factory

reconfiguration before new model launches.

The automaker and the government have been discussing for

over a year a plan to restore national output to one million

units by the end of this decade, a level last reached in 2017,

but they never reached an agreement.

($1 = 0.9152 euros)

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