Stellantis has been facing pressure from unions in Italy over low demand for its electric vehicles (EVs) built in the country, and now the multinational automaker’s CEO is set to address a committee with the Italian Parliament.
CEO Carlos Tavares will speak to an Italian Parliament committee on October 11, after major unions in the country have announced plans to strike the Fiat parent company a week later (via Reuters). Multiple Italian unions plan to strike against Stellantis over low production in the country, resulting from low demand over the locally-produced Fiat 500e.
According to a statement from Stellantis, the CEO can “provide the most exhaustive picture of the group’s automotive production in Italy.”
“The complex international and European situation of the automotive sector requires rapid responses,” the statement adds.
Stellantis Chairman John Elkann confirmed in recent weeks that, while there were no immediate plans to replace Tavares, the company has begun considerations for his successor.
Low order volume for the Fiat 500e electric vehicle caused Stellantis to halt production at its Mirafiori facility in Turin, Italy until November 1, though it had previously aimed to reboot production by October 11.
Italy’s largest metalworkers and automotive unions, FIM-CISL, UILM, and FIOM, last week announced plans to strike against Stellantis on October 18, after data showed a 25-percent drop in output for the first half of the year from the automaker’s factories in Italy. Stellantis is currently projecting Italian production output to reach 500,000 for all of 2024, representing a substantial drop from around 751,000 in 2023.
European Union (EU) funding that was originally dedicated to a Stellantis battery project was also reallocated by the Italian government last month. The funding was valued at $223 million, and was set to help Stellantis fund a joint venture with ACC to build three battery production facilities in Italy, Germany, and France.
Stellantis, which also owns U.S. automakers Jeep, Dodge, and Chrysler, currently also faces significant pressure from the largest U.S. automotive union, the United Automotive Workers (UAW). The UAW has called for Tavares to step down, after claims that the company wasn’t upholding contract plans to re-open a retired factory in Belvidere, Illinois.
The union charged Stellantis with unfair labor practices last month, and it has been threatening to launch a strike at the company’s plants, along with urging workers to authorize such a strike.
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