MILAN, June 4 (Reuters) - Stellantis ( STLA ) sees its
Italian plants running at full capacity in 2030 as plans for new
models, including hybrid ones, are expected to support
production, Chief Executive Carlos Tavares said on Tuesday.
Stellantis ( STLA ) and the Italian government have fought a war of
words in recent months over the automaker's falling output in
the country, with Rome criticising it for moving production of
some models of its historic Italian brands Fiat and Alfa Romeo
to lower cost countries.
Tavares said on Tuesday the company had given reassurance to
unions about its production plans until the start of the next
decade, and beyond in some cases. However, he criticised the
high costs of energy in Italy.
"It is quite clear that there is no problem of activity in
Italy," he said, after meeting unions at Stellantis Melfi plant
in southern Italy.
"In Italy there will be 100% of capacity for all plants in
2030," Tavares said, adding that was based on a working week
pattern of 15 eight-hour shifts.
Stellantis ( STLA ) employs around 43,000 people in Italy but the
number could fall during this year following agreements in March
with unions on voluntary redundancies.
Last week the group said it would add production of hybrid
versions of its Fiat 500 small car and of its Jeep Compass SUV
as part of a wider plan of new models to be built in Italy, amid
a general slowdown in electric car sales.
Stellantis ( STLA ) - Italy's only major automaker - and the Rome
government are in talks over a plan aimed at restoring the
group's production in the country to one million vehicles by the
end of this decade from around 750,000 last year.
Tavares said the group and the government shared a "common
ambition" to produce one million cars in Italy, but added that
"one million customers" were needed to meet the target.
He said a "totally uncompetitive" cost of energy was the
main problem for production in Italy.
"It's more than the double of what it should be compared to
the other countries," he added.
ACC, a battery joint venture backed by Stellantis ( STLA ) and
Mercedes, said on Tuesday it had paused work on
factories in Germany and Italy as the company switches to lower
cost batteries amid slowing demand for electric vehicles.