Italian autoworkers have commenced a national strike, marking the first time in two decades that workers in Italy’s troubled automotive sector have taken such widespread industrial action. The strike, organised by the sector’s three main unions, is accompanied by a large-scale demonstration at the heart of Rome.
Tensions have been escalating between the global automaker Stellantis and the Italian far-right government, with accusations levied against the car manufacturer of moving assembly plants to lower-cost countries. Stellantis, the world’s fourth-largest automaker, is facing mounting pressure worldwide to clarify its future production plans amidst increased competition and financial challenges.
Formed in 2021 from the merger of Fiat-Chrysler and PSA Peugeot, the multinational group experienced a significant decline in output across its Italian plants in the first half of 2024. Over the past 17 years, Stellantis has reduced its Italian production by nearly 70%.
CEO Carlos Tavares attributed rising production costs to EU carbon emission regulations, hinting at the potential closure of some assembly plants to better compete with China. Tavares also mentioned the possibility of job cuts and stressed the need for additional state incentives to stimulate demand for electric vehicles.
Stellantis, known for producing Jeep and Chrysler vehicles, garnered attention after issuing a profit warning indicating an expected loss of up to 10 billion euros ($11.2 billion) for the year. Tavares faced criticism from U.S. dealers and the United Auto Workers union due to poor financial performance, resulting from an excess of high-priced vehicles in dealership inventories.
In response, cost-cutting measures have been initiated, including postponing factory openings, laying off union workers, and offering buyouts to salaried employees. The company announced plans in September to seek a successor for Tavares, aged 66, as part of an envisaged leadership transition. While Tavares’ five-year contract was due to expire in 2026, the company indicated the possibility of an extension beyond that timeframe.