Italian Auto Workers to Strike on Oct. 18 Due to Stellantis Output Drop

Workers in Italy’s automotive industry are set to strike on October 18, a decision announced by major metalworkers unions in response to a significant decline in output from Stellantis, the country’s leading car manufacturer.

Alongside the strike, unions have organized a national demonstration in Rome on the same day to amplify their concerns regarding the industry’s future.

Stellantis, formed in 2021 through the merger of Fiat-Chrysler and PSA Peugeot, has reported a steep drop in production at most of its Italian facilities during the first half of 2024, as indicated by data from the FIM-CISL union.

Estimates now suggest that Stellantis will produce just over 500,000 vehicles in Italy this year, a significant decrease from the 751,000 units manufactured in 2023. This downturn reveals a troubling trend, as the automaker has reduced its Italian production by nearly 70% over the past 17 years.

The company, which owns brands like Jeep and Ram, is currently undergoing a leadership transition as it searches for a new CEO to take over from Carlos Tavares. This change is part of an expected leadership succession plan.

Tavares, who played a key role in facilitating the merger between PSA Peugeot and Fiat-Chrysler, has faced criticism for the company’s disappointing financial results during the first half of the year. The company’s North American operations have traditionally been its primary source of profit; however, they have encountered challenges this year due to broader market shifts.

In Italy, Stellantis has engaged in ongoing discussions with the right-wing government concerning plans to boost production, but so far, no consensus has been reached.

As the strike and demonstration approach, the workers’ unions are emphasizing the necessity for immediate action to address the troubling state of the automotive sector in Italy. The unions argue that the current trajectory is unsustainable and that new strategies must be established to revive the industry.

Many employees and stakeholders are expressing concerns about the future viability of their jobs as production continues to dwindle. The unions are mobilizing support from workers throughout the sector, as well as from other allies to strengthen their stance during the planned strike.

The challenges facing Stellantis reflect larger issues within the automotive industry, including the need for innovation and adaptation to shifting consumer preferences and market conditions.

As the strike date draws near, the workers’ demands underscore the critical nature of support for Italy’s automotive ecosystem. Without decisive action, the future of many jobs and the health of manufacturing in the region may be at risk.

The situation emphasizes the importance of cooperation between automotive companies, unions, and government officials to foster a sustainable future for the industry.