According to Automotive News Europe, on Tuesday this week, the Italian metal workers' unions of FIM-CISL, UILM and FIOM announced plans to strike against the automotive company Stellantis on October 18. Just last week, the United Auto Workers (UAW), the largest automotive union in the U.S. also threatened to organize strikes at several of the company's operational facilities in the country. The French-Italian automotive group now appears to be facing a series of challenges from both European and North American regions.
Stellantis, which was formed in 2021 by the merger of Fiat-Chrysler and PSA Peugeot, currently has 14 automotive brands under its group. Data provided by the FIM-CISL union shows a dramatic 25% drop in production at Stellantis plants in Italy in the first half of this year. FIM-CISL predicts that Stellantis's annual production in Italy will be just over 500,000 vehicles this year, significantly lower than last year's 751,000. Over the past 17 years, the struggling automaker has cut its production in Italy by nearly 70%. Stellantis also manufactures the Fiat 500e compact electric vehicle at a plant in Turin, Italy, which is one of the facilities where workers plan to strike.
Stellantis has been going through a difficult transition period in recent months. The automaker's efforts to transition from internal combustion engine vehicles to electric vehicles have led to the suspension of production at some of its factories.
Stellantis has also recently come under fire from the auto worker union and dealers from the U.S. Recently, the UAW accused the Dodge-Chrysler parent company of unfair labor practices and failure to keep promises to reopen the factory in Belvidere, Illinois, threatening strikes at several Stellantis facilities in the United States.
Stellantis's Jeep and Ram truck brands, which operate in North America, have been the company's main profit sources, but the North American business has been struggling in the first half of this year. Dealers in North America and Europe have also criticized Stellantis CEO Carlos Tavares for mismanagement due to severe inventory backlogs. On Monday, it was confirmed by the media that Stellantis has begun the search for a new CEO to succeed Tavares, although the company stated that this is a normal leadership succession plan and there are currently no plans to replace him soon.
Last week, Stellantis also lost $223 million in funding from the European Union for the Termoli battery plant in Italy, which was planned by ACC, its subsidiary and a joint venture with Mercedes-Benz and TotalEnergies. Italian Minister of Industry Adolfo Urso also pressured Stellantis last month, stating that if the company did not start building the factory soon, the Italian government would withdraw $410 million in funding for the project. The total investment for the ACC Termoli battery plant in Italy is expected to be around $2.2 billion. Another $200 million in funding support will come from other regional and national funds. However, Stellantis CEO Carlos Tavares remains hopeful about the battery gigafactory in Italy, stating that if market demand increases, the expansion of battery capacity will be arranged.
Despite facing a series of difficulties, Stellantis has been daring forward in its electrification transition. In a statement released on Tuesday, Stellantis reaffirmed its commitment to finding “shared solutions to address the challenges regarding the automotive sector." The group also emphasized that energy transition is a priority that can no longer be postponed and requires “huge and urgent measures” aimed at reducing production costs.
Yesterday (September 24), the 51/49 Stellantis-led joint venture with Leapmotor, Leapmotor International, held a media drive in Milan for the T03 and C10 SUV electric vehicle models, which will be delivered in Europe at the end of September and October, respectively. The two parties aim to increase the number of Leapmotor sales points to 350 by the end of 2024 and gradually expand from the European market to the Middle East and Africa, Asia-Pacific, and South America. In addition, they plan to release a new model every year for the next three years.
Last week, Stellantis inaugurated its new Stellantis Pro One Global Commercial Vehicles Center at the Mirafiori Automotive Park in Turin, Italy. The Stellantis Pro One commercial vehicle business accounts for one-third of Stellantis's total net revenue. Earlier this month, Stellantis invested more than $406 million in three factories in Michigan, USA to produce a variety of electric vehicle models.
Stellantis reported steady growth of new energy vehicles with its wide offer of BEV, PHEV and MHEV models, with its battery electric vehicle (BEV) sales captured 13% of the market share in EU29 from January to August this year. In France, its electric vehicle sales grew by nearly 40%, with the Peugeot E-208 being the best-selling electric vehicle in the first eight months of the year. In Italy, the Peugeot brand conquered over 9% of the electric vehicle market share in August. In the UK, Stellantis is the UK's largest electric van manufacturer, with Vauxhall leading in electric retail and Motability channels.
According to the "Dare Forward 2030" strategy, Stellantis plans to invest more than €50 billion in electrification transformation over the decade, aiming to achieve a 100% battery electric vehicle (BEV) sales mix for passenger cars in Europe and a 50% BEV sales mix for passenger cars and light commercial vehicles in the United States by 2030. To achieve these sales targets, the company is securing about 400 GWh of battery capacity in Europe and the United States. Stellantis plans to become a net-zero carbon company by 2038.
