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Stellantis sees Italian plants running at full capacity in 2030
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Stellantis sees Italian plants running at full capacity in 2030
Jun 4, 2024 9:20 AM

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.

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