Stellantis suspends work at two Italian factories as government

Stellantis is suspending production at two of its factories in Italy, which will force its employees to furlough. The move comes amid rising tensions between carmakers and Italian authorities.

The company recently confirmed to local unions that work at the Termoli engine plant will cease from December 16 to 22, while production at the Cassino plant will cease on November 29. Stellantis acknowledged that it faces “a challenging path that requires hard choices and no easy choices.” solution. ” It added that it was keen to “ensure the continuity of its Italian operations”.

Read: Italian government warns Stellantis – build battery plant or lose funding

Stellantis suspended production at several plants in Italy and abroad throughout the year. However, it recently assured the Italian government and unions that it would not permanently close its factories in the country or carry out any large-scale layoffs. The government has also given Stellantis until December 16 to submit a “compelling and sustainable” local investment plan, Yahoo! financial reporting.

Speaking at a recent parliamentary session, Italian Industry Minister Adolfo Urso said he had urged Stellantis to commit to local production of new small cars to help the country’s parts industry. It also needs to clarify plans for a battery production site.

The brand had promised to build a battery factory in Italy through its joint venture ACC. However, plans for the factory, along with two other battery gigafactories in Europe, were shelved earlier this year. The joint venture is partly owned by Mercedes and TotalEnergies. The company initially planned to start operations at its battery factory in Termoli, Italy, in 2026.

In August, Urso revealed that Stellantis risked losing €370 million in public funding from the EU’s post-COVID-19 recovery fund if it failed to commit to building the plant.

“Strantis must give us an answer, and it must answer quickly,” he said. “If Stellantis does not give us positive feedback within a few hours, we will move the funds elsewhere. We cannot afford to lose these funds because Stellantis does not live up to its commitments.”