The market situation is severe, Stellantis (STLA.US) suspends production at some Italian plants

The Zhitong Finance App learned that Stellantis (STLA.US) said on Wednesday that in order to cope with the severe market situation, the company will suspend activities at some assembly and engine plants in Italy next month, including the production of Fiat Panda (Fiat Panda).

Stellantis Italy said in a statement that the planned shutdown will affect Pomigliano d'Arco, Termoli and Pratola Serra plants for a few days from November 11 to 29, and the company has notified the trade union.

According to information, Stellantis is currently facing challenges across the industry, such as low demand for more expensive electric vehicles and competition from China. The company is also struggling to deal with excess inventory in the US, which has caused the company to lower profit and cash flow expectations.

In Italy, Stellantis has suspended production at its historic Mirafiori plant in Turin until November 1. The plant produces an electric Fiat 500 and two Maserati sports cars.

The company said in a statement on Wednesday that it is determined to “ensure the continuity of its Italian business,” but stated that it is facing “a challenging path requiring tough choices and no easy solutions.”