ROME (Reuters) - Stellantis ( STLA ) does not plan to close plants or make mass redundancies in Italy, an executive at the automaker said on Thursday during talks organised by the Italian government to address concerns about the country's car industry.

Industry Minister Adolfo Urso hosted the meeting in Rome with industry representatives and trade unions, as the Italian auto industry grapples with falling output and idle plants, and sales of Stellantis' ( STLA ) Italian brands Fiat, Alfa Romeo and Lancia are shrinking.

"Stellantis ( STLA ) does not intend to close any plants in Italy, just as it has no intention of making collective redundancies," Italy human resources manager Giuseppe Manca was quoted as saying in a company statement.

Stellantis ( STLA ) is facing industry-wide challenges such as low demand for more expensive electric vehicles and competition from China. It is also grappling with bloated U.S. inventories that have led it to cut profit and cash-flow forecasts.

The company is Italy's sole major automaker, but its output there is tanking. Last month the FIM-CISL union predicted Italian annual vehicle production would fall to under 500,000 units this year, the lowest since 1958.

Last week, a trade union source said they expected Stellantis ( STLA ) to again pause production at the historic Mirafiori factory in Fiat's hometown of Turin, where the electric Fiat 500 city car and two Maserati sports cars are made.