Italian auto workers go on strike as pressure mounts on Stellantis

Workers in Italy’s troubled car industry are holding a national strike for the first time in 20 years.

Tens of thousands of auto workers have taken to the streets of Rome, waving union flags and carrying placards, protesting working conditions in the auto industry. Italy’s three main trade unions have called on the government to protect jobs in the industry and help secure the future of the Italian car industry.

“We work one or two days a week when things work out. That’s why we say today that only the workers can pay for the (ecological) movement,” said Riccardo Falcetta, an official at the Bari UIL metal workers’ union.

Uncertainty about the future plans of global car manufacturer Stellantis is at the heart of the current strike action. The world’s fourth-largest carmaker is under pressure to provide clarity on its future product plans as it faces increased competition and financial pressure.

Italy’s far-right government has accused the company of moving assembly plants to low-cost countries. According to data from the Italian Metallurgical Federation, the production of Stellantis for the first nine months of 2024 has fallen by 40% compared to last year.

“To reach the government’s target of 1 million vehicles in 2030, the Stellantis Group would need to double production,” the report said.

Turmoil around Stellantis

The international concern, created in 2021 by the merger of Fiat-Chrysler and PSA Peugeot, recorded a significant drop in production in the first half of 2024 at most of its Italian plants. Over the past 17 years, the carmaker has cut its Italian production by almost 70%.

The company’s boss, Carlos Tavares, recently blamed EU carbon regulations for increasing production costs, suggesting the group may have to close some assembly plants to compete with China. He said job cuts “cannot be ruled out” and reiterated the need for additional incentives from the government to increase demand for electric cars.

Stellantis, which makes Jeep and Chrysler cars, has been in the spotlight after a profit warning in which it said it expected to end the year with a loss of up to 10 billion euros ($11.2 billion).

This week, the company announced that it will stop production of the Fiat Panda in November. This decision follows a similar decision a month ago regarding the electric Fiat 500.

At the same time, there is also uncertainty over the factories of the French car group. However, they will all have a three-year production plan by mid-November, AFP reports.