PARIS/MILAN, Sept 23 (Reuters) - Stellantis ( STLA )
will temporarily halt production at its Poissy plant in France
and Pomigliano in Italy, starting from the end of September and
for up to three weeks, because of weak market demand in Europe.
Production would be stopped in Pomigliano, near Naples, from
September 29 to October 6 for the Fiat Panda small car and from
the same date to October 10 for the Alfa Romeo Tonale mid-sized
SUV, Stellantis ( STLA ) said on Tuesday.
The plant's 3,800 workers will be put on furlough, it added
in a statement.
The announcement came after a spokesman for the automaker
told Reuters on Monday it was pausing operations in Poissy, west
of Paris, from October 13 to 31 "to adapt its production rate to
a difficult market in Europe".
Poissy, which employs 2,000 people, makes the DS3 and Opel
Mokka small SUVs. The plant will strive to manage its stocks as
effectively as possible before the end of the year and take the
opportunity to carry out work and schedule training courses, the
spokesman said.
Car registrations in Europe were broadly flat in the
January-July period versus a year earlier at around 7.9 million
units, while those of the Stellantis brands fell 8% to 1.19
million units in the same period.
Stellantis ( STLA ) said orders for the Alfa Romeo Tonale were also
impacted by tariffs in the U.S., a significant market for the
brand, while the decision to halt Panda production also
reflected plant optimisation needs, as orders from fleets and
rental companies tend to decline in the final part of the year.
"In this context, Stellantis ( STLA ) has chosen a cautious and
responsible approach, suspending production at the Pomigliano
plant for a limited period," the carmaker said.