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13 December 2024

Daily Newsletter

13 December 2024

Stellantis extends production halt at Mirafiori plant – report

Low sales of the electric Fiat 500 have left the Mirafiori facility struggling on its level of capacity utilisation.

aranyamondal December 13 2024

Stellantis will extend its production stoppage at the Mirafiori plant in Italy for an additional two weeks, now lasting until 20 January 2025, Reuters reported citing the head of the FIOM-Cgil trade union.

The decision, initially reported by the daily newspaper MF, has yet to be officially confirmed by the company, FIOM's Gianni Mannori told Reuters.

Stellantis stated that it is still assessing its order books for January and refrained from commenting on the media speculation surrounding the extension.

The company added that further announcements regarding January's production schedule will be made next week.

This two-week extension follows an earlier halt, which had been set from December 2 to January 5, for the electric Fiat 500 production.

The decision comes amid ongoing challenges with weak market demand for electric vehicles (EVs) in Europe.

The Mirafiori facility, which also produces Maserati sports models, has faced several production suspensions throughout the year due to low sales of these vehicles.

While production of the Fiat 500 and other models will be paused, parts of the plant, including administrative offices and research sites, will continue to operate.

The company has said it is still reviewing its order books for January.

The situation at Mirafiori reflects broader industry concerns as automakers grapple with fluctuating demand for EVs and the impact of global economic conditions.

Stellantis' challenges at Mirafiori are compounded by its decision in November to close its Luton plant in the UK, which has been producing Vauxhall vehicles for nearly 120 years.

Also, this month, Stellantis CEO Carlos Tavares resigned amid strategic disagreements.

Although the company had planned for his retirement in 2026, the board accepted his resignation immediately.

Last month, Stellantis reported a 20% drop in third-quarter shipments, particularly in North America, where corrective actions are being taken to reduce inventory.

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