Stellantis (STLA.US) Italian automobile production plummeted 25% in 2025, almost falling short of its peak

The Zhitong Finance App learned that according to the Italian Automobile Industry Federation (FIM-CISL), Stellantis (STLA.US)'s automobile production in Italy fell sharply by nearly a quarter last year. This data highlights that the group is trying to revive the difficulties faced by its original production site in a context where the Italian political community requires companies to commit to maintaining local factory operations.

The union said at a press conference in Turin that only a rebound in production in the fourth quarter prevented the decline from widening further. According to the data, by the end of September 2025, the group's passenger car production in Italy had a year-on-year decline of 36%. Total annual production, including vans, fell 20% year on year to 379,706 units, of which 213,706 were passenger cars.

To renew its product line, Stellantis will start production of the new Fiat 500 hybrid model at the Turin plant at the end of 2025, and will begin mass production of the new Jeep Compass at its plant in southern Italy. FIM-CISL Secretary General Ferdinando Uliano said that the two new cars are expected to drive a continued recovery in production in 2026.

As the only popular automobile manufacturer in Italy, Stellantis previously received close attention from the Meloni government due to the transfer of production capacity to low-cost countries such as Morocco by former CEO Carlos Tavares, which led to a decline in local production.

It is worth noting that due to market demand for the all-electric Fiat 500 falling short of expectations, Stellantis plans to revitalize the Mirafiori plant in Turin and inject new life into the historical birthplace of Fiat by achieving the goal of producing 100,000 Fiat 500 hybrid models per year.

According to the data, production at the Italian factory has almost fallen short of the recent peak of over 750,000 vehicles in 2023.

Antonio Filosa, the new CEO who took office last June, has tried several times to assure the government of its commitment to Italy — even though the group is also investing heavily in the US market. According to its disclosure, the group promised more than 7 billion euros (about 8.2 billion US dollars) of orders to suppliers with business in Italy last year, while investing 2 billion euros in the Italian production base.

However, trade unions pointed out that in the end, a recovery in production still depends on a recovery in market demand. About half of union members claimed unemployment benefits in 2025. In addition, the release of the Group's new strategic plan, which the market is paying close attention to, was also postponed. It was originally scheduled to be announced in the first quarter of 2026, but has now been adjusted to the second quarter.

Oddo BHF analysts believe that the annual production target for the Fiat 500 hybrid model may be too aggressive. Compared to the previous model, the power performance of the new car has weakened, and it was not equipped with an automatic transmission at the beginning of the market, which may limit its market appeal.