The vehicle production of car manufacturer Stellantis in Italy reached its lowest level since the 1950s in 2024 with 475,090 units, according to figures from the FIM-CISL union. This represents a drastic decline compared to over 750,000 vehicles in 2023.

Stellantis, formed from the merger of Fiat-Chrysler and PSA-Peugeot in 2021, faces massive challenges.

The Chairman of the Board, John Elkann, is currently leading the search for a new CEO. Their primary task will be to solve production problems in Europe and address challenges in the USA, where high inventories forced the company to review its profit forecast for 2024.

Production at the Mirafiori plant in Turin plummeted by 70% according to FIM-CISL, as the company sent thousands of Italian workers on short-time work. Passenger vehicles recorded a decline of 46%, while commercial vehicles were produced 17% less. Despite these setbacks, Stellantis reiterated its goal to manufacture one million vehicles in Italy by 2030 following Tavares' departure. Additionally, an investment plan of 2 billion euros for 2024 was confirmed, encompassing both commercial vehicles and passenger cars.

Stellantis and Volkswagen lost access to some U.S. tax credits for plug-in hybrid vehicles this week as stricter rules from President Joe Biden's Inflation Reduction Act came into effect. Stellantis shares fell by 3.8%, while VW shares declined by 0.8%.

The FIM-CISL union also announced that it would protest in Brussels next month against the planned EU ban on combustion engines from 2035. It warned of the serious consequences the ban would have for the industry.