Stellantis' Italy vehicle production drops to lowest level since 1956

On Friday, Stellantis (NYSE:STLA ), the automotive giant formed by the merger of Fiat (BIT:STLAM ) Chrysler and PSA-Peugeot in 2021, reported a significant reduction in its vehicle production in Italy. According to union figures, production decreased by 37% last year, with a notable 46% drop in car manufacturing, marking the lowest level since 1956. The production of new commercial vehicles also declined by 17%.

The company has been grappling with overcapacity issues in Italy and has leaned on state-funded temporary layoff schemes to manage the situation. In December, Stellantis unveiled a strategy aimed at ramping up production volumes. However, the anticipated increase in production is not expected until 2026, coinciding with the introduction of new vehicle models.

The FIM-CISL union highlighted that Stellantis produced a total of 475,090 vehicles in Italy in the past year, a stark decrease from the 751,384 vehicles manufactured in 2023. This downturn reflects the broader challenges faced by the automotive industry, including supply chain disruptions and shifting market demands.

Stellantis has not publicly commented on the impact this production drop may have on its financial performance or market position. The company's plan to rejuvenate its Italian production operations is set to play a critical role in its future growth, as it anticipates the launch of new models to drive production numbers up.

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Source: Investing.com