Trade union warning: Stellantis (STLA.US) automobile production in Italy plummeted by nearly 30% in the first half of the year

The Zhitong Finance App learned that the Italian trade union warned that Stellantis (STLA.US) automobile production in Italy fell by one-third in the first half of this year, and that this year's production may decline further from the decades-long low set in 2024.

According to a report released by the Italian Automobile Industry Federation (FIM-CISL) on Monday, in the first six months of 2025, Stellantis passenger car production fell 34%, while commercial vehicle production fell 16%. The company produces Fiat, Alfa Romeo, and Jeep brand models in Italy.

This drop in production is a blow to the new CEO Antonio Filosa, who has faced many challenges since taking office at the end of June. The company's sales volume in its most important US market fell 10% in the first half of the year, while registrations in Europe have also been declining. After removing former CEO Carlos Tavares last year, Stellantis promised to increase production in Italy to repair the relationship with the Italian government.

Stellantis saw a drop in production at all five automobile manufacturing plants in Italy. Among them, production at the Pomigliano d'Arco plant near Naples declined sharply, and the plant's production trend was rising last year. The plant produces 64% of Italian cars, including Italy's best-selling Fiat Panda, which saw a 15% drop in production in the first half of the year.

“No business can escape this serious predicament,” the union said. As a result, “the rate of use of the social security system is likely to increase, which currently involves almost half of the group's employees.”

The union said the total production of passenger cars in the first half of the year was 123,905 units, while commercial vehicle production was slightly less than 100,000 units. Together, production of the two decreased by 27%.

FIM-CISL said production prospects in Italy are not expected to improve due to sluggish demand and the automotive industry's transition to electric vehicles.

Stellantis fell nearly 4% at the beginning of the US session on Monday. Stellantis's stock price has fallen by one-third this year, and its current market capitalization is 25.3 billion euros (about 29.6 billion US dollars).