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Stellantis extends furlough scheme at Italian plant on weak demand, tariffs
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Stellantis extends furlough scheme at Italian plant on weak demand, tariffs
Aug 25, 2025 8:15 AM

MILAN, Aug 25 (Reuters) - Carmaker Stellantis

on Monday agreed a scheme with unions allowing it to place the

more than 1,800 workers at its Termoli plant in southern Italy

on reduced hours due to a weak market outlook.

The Uilm union, one of those involved in the agreement, also

cited the impact of U.S. tariffs as a factor.

As part of the scheme, which will run for 12 months from

September 1, the carmaker can put Termoli's workers on furlough

for up to 80% of their total contractual hours in the period. It

replaces a previous scheme, which expired this month but

affected only around 900 workers.

A spokesman for Stellantis ( STLA ) confirmed the agreement was

signed on Monday, without giving further details.

Termoli, in southern Italy, makes petrol engines for the

group.

A soft auto market, especially in Europe, as well as the

long time until the introduction of new models and parts, makes

the outlook uncertain for the plant, said Francesco Guida, of

the Uilm union.

Guida added one of the engines made in Termoli, the

production of which involves some 500 workers at the plant, had

until now also been shipped to the United States to be fitted on

the Jeep Compass SUV assembled there and is now subject to

tariffs imposed by President Donald Trump.

"This will definitely have an impact on activity in

Termoli," he said.

Stellantis ( STLA ) earlier this year assigned to Termoli the

production of dual-clutch transmissions for hybrid vehicles, but

that is not scheduled to start before next year.

Termoli had been also earmarked by the Stellantis ( STLA )-backed ACC

joint venture for the creation of one of its three European

electric vehicle battery-making hubs, but the plan was

officially paused last year.

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