Stellantis CEO to Meet Italy Unions Amid Slow Europe Car Demand

(Bloomberg) — Stellantis NV Chief Executive Antonio Filosa is meeting with Italian labor unions on Monday as weak demand has prompted the Fiat and Alfa Romeo automaker to halt production at several factories.

Unions such as FIM-CISL and Fiom said they wanted Filosa to make clear its intention to produce in Italy after a prolonged decline in local car production raised questions about the future of sites such as Cassino and Termoli. They also want more clarity on plans for the troubled Maserati brand.

Late last year, Stellantis pledged to make new models of its overhauled Fiat 500 small car in Italy as part of an effort to repair relations with the government after the tenure of former CEO Carlos Tavares, who tried to shift production to cheaper countries such as Morocco. A few days after his ouster, Stellantis pledged to invest 2 billion euros ($2.3 billion) in Italy this year.

Stellantis did not immediately respond to a request for comment on the meeting.

Like its rivals, Stellantis, BYD Co. It is struggling with overcapacity in Europe, where Chinese manufacturers, led by its leadership, are expanding with competitively priced cars. The company has committed to 6 billion euros in orders from local suppliers and promised not to close any Italian plants.

In Europe, Stellantis temporarily closed many of its facilities due to decreased demand for some models and its impact on local suppliers. Forvia said on Monday it was facing costs of “several tens of millions of euros” in sales this year due to the production halt.

Filosa’s withdrawal of some of its investments in Europe and its promise to invest $13 billion in the United States, a critical market, in the next four years, further increased the concerns of the European Union.

More stories like this available Bloomberg.com