MILAN (Reuters) – Stellantis expects its Italian factories to operate at full capacity in 2030, with plans for new models, including hybrids, expected to support production, Chief Executive Carlos Tavares said on Tuesday.
Tensions have emerged between Stellantis and the Italian government in recent months over the carmaker’s falling production in the country, with Rome accusing it of outsourcing production of models from its historic Italian brands Fiat and Alfa Romeo to countries in lower costs.
Carlos Tavares said Tuesday that he had reassured the unions about the company’s production plans for 2030, and beyond in certain cases.
“It is clear that there is no problem with activity in Italy,” he said after meeting the unions at the Stellantis factory in Melfi, in southern Italy.
“In Italy, all factories will operate at 100% capacity in 2030,” said Carlos Tavares, specifying that this figure was based on a work week based on “three eights”.
Stellantis employs around 43,000 people in Italy, but that number could fall this year following deals reached in March with unions, including voluntary departures.
Last week, the group said hybrid versions of its Fiat 500 city car and Jeep Compass SUV would be built in Italy as part of a broader plan to produce new models in the country, as sales of electric cars are declining.
Stellantis, Italy’s only major carmaker, and the government are in discussions over a plan to restore the group’s production in the country to one million vehicles by 2030, up from approximately 750,000 last year.
Carlos 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 reach that goal.
The cost of energy, “absolutely not competitive”, is the biggest problem linked to production in Italy, according to the business leader.
“It is more than double what it should be compared to other countries,” he added.
ACC, a joint venture of Stellantis and Mercedes, announced on Tuesday that it had halted its plans for factories in Germany and Italy, in order to turn to the production of less expensive batteries, in the face of slowing demand for electric vehicles.
(Reporting Giulio Piovaccari; Mathias de Rozario, editing by Kate Entringer)
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