Multinational automaker Stellantis is now facing additional strikes from unions in Italy, after the largest automotive union in the U.S. last week threatened multiple strikes against the company.
On Tuesday, Italian metalworkers’ unions FIM-CISL, UILM, and FIOM announced plans to hold a strike against Stellantis on October 18, according to a report from Automotive News Europe. Data from FIM-CISL for the first half of the year show a 25-percent decline in output from Stellantis factories in Italy, painting a grim picture that was highlighted during a press conference on Tuesday.
“The situation is bad, very bad,” said Rocco Palombella of the UILM during the conference, which included officials from all three unions.
Currently, the FIM-CISL projects that the Fiat parent company will produce just more than 500,000 units in Italy for the full year, down from 751,000 last year. The automaker also produces the Fiat 500e electric compact vehicle at a facility in Turin, Italy, which is one of the facilities at which workers plan to strike.
The strikes follow a rough few months for Stellantis, due to production halts as the automaker’s brands attempt to transition to electric vehicles (EVs).
Meanwhile, the United Automotive Workers (UAW) union, the largest automotive union in the U.S., charged the Dodge-Chrysler parent company with unfair labor practices just last week, threatening strikes at multiple facilities. The union claims that Stellantis failed to uphold plans to reopen a retired factory in Belvidere, Illinois, which was included in a contract signed between the two following six-week strikes last fall.
Stellantis also lost critical European Union (EU) funding last week for a planned battery production facility and joint venture with ACC in Termoli, which was valued at around $223 million. Italian Minister of Industry Adolfo Urso warned Stellantis last month that it could revoke funding for the project, saying that the company had been awaiting the automaker’s answers on reviving the country’s auto industry “for far, far too long.”
Dealerships across North American and European markets have also been targeting Stellantis CEO Carlos Tavares with claims of mismanagement, especially related to extremely high inventory levels. On Monday, it was also confirmed that Stellantis has begun the search for a successor to Tavares, though there are no immediate plans to replace him.
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