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Automotive Industry
Stellantis NV will temporarily halt production at some of its plants in Europe, amid lagging demand for models including the Alfa Romeo Tonale sport utility vehicle.
The automaker will pause production of Tonale and Fiat Panda vehicles in Pomigliano, Italy from Sept. 29, the company said Tuesday after a meeting with local labor union representatives. Separately, Stellantis confirmed the halt of its Poissy plant near Paris from Oct. 13 to Oct. 31. It makes Opel and DS cars at the French site.
Stellantis is “adapting the rhythm of production in some of its plants in Europe,” the company said in a statement on Tuesday. It “aims to adjust the production pace to a challenging market in Europe while managing inventories as efficiently as possible before the end of the year.”
Other factories facing temporary production halts include Tychy in Poland, Eisenach in Germany and two plants in Spain, according to people familiar with the matter, who asked not to be identified because the information is private.
A spokesperson for the company declined to comment on production halts outside of Italy and France. Les Echos previously reported on the temporary closures.
Like its rivals, Stellantis is contending with excess capacity in Europe, where Chinese manufacturers led by BYD Co. are expanding with competitively priced cars. The group, which owns brands such as Jeep and Dodge, must also halt a sales slide in the key US market, where President Donald Trump’s tariffs are raising costs and disrupting supply chains.
Late last year, the company presented an ambitious production plan for Italy, adding to pressure on new Chief Executive Officer Antonio Filosa to make good on those pledges at a troubled time for the industry. Filosa, who recently called for urgent European Union action to rescue the region’s car industry, is due to present a new business plan in the first quarter next year.