ROME (Reuters) – Stellantis announced on Wednesday new temporary shutdowns at two of its factories in southern Italy, where the carmaker is in discussions with the government which is seeking commitments on new investments.

In two separate statements, the group said it informed unions of a pause in production at the Termoli engine plant from December 16 to 22 and at the Cassino automobile plant on November 29.

During these stoppages, workers will be placed on technical unemployment.

The carmaker, whose Italian brands include Fiat and Alfa Romeo, said it was determined to “ensure the continuity” of its activities in Italy but stressed that it faced “a difficult path that requires difficult choices and n ‘offers no easy solutions.’

Stellantis faces challenges that affect the entire automotive sector, such as low demand for electric cars (EVs) and competition from Chinese players.

The Franco-Italian-American manufacturer is also faced with excessive stocks in the United States, which led it to launch a resounding “profit warning” at the end of September.

In Italy, Stellantis has repeatedly halted production this year, including at its historic Mirafiori factory in Turin, but in talks last week with the government and unions it pledged not to close any factories in the country and not to carry out massive layoffs.

During these discussions, the government asked Stellantis to present a new “convincing and sustainable” investment plan for Italy before December 16, said Industry Minister Adolfo Urso during a question session in Parliament.

Illustrating the problems facing the auto industry, Ford announced Wednesday that it would cut about 14 percent of its workforce in Europe. Volkswagen, Europe’s leading car manufacturer, is threatening to close factories in Germany, which would be a first in the history of the German group.

(Written by Alvise Armellini, Mara Vîlcu, edited by Blandine Hénault)

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