According to the Italian Federation of Metalworkers (FIM-CISL), Stellantis NV's car production in Italy last year plummeted by nearly a quarter. This figure underscores the challenges the group faces in revitalizing its historic manufacturing base, amid political pressure from the Italian government demanding a firm commitment to sustain local plant operations. The union stated at a press conference in Turin that a rebound in fourth-quarter production prevented an even steeper decline. Data shows that by the end of September 2025, the group's passenger car production in Italy had at one point fallen by as much as 36% year-on-year. Total annual production, including vans, dropped 20% to 379,706 vehicles, with passenger car output accounting for 213,706 units.
To refresh its product lineup, Stellantis commenced production of the new Fiat 500 hybrid model at its Turin plant at the end of 2025 and also started mass production of the all-new Jeep Compass at its southern Italy factory. Ferdinando Uliano, Secretary-General of FIM-CISL, expressed that these two new models are expected to drive a sustained production recovery in 2026. As the sole mass-market car manufacturer based in Italy, Stellantis has drawn close scrutiny from the Meloni government, following a decline in domestic output attributed to former CEO Carlos Tavares shifting capacity to lower-cost countries like Morocco.
Notably, due to weaker-than-expected demand for the fully electric Fiat 500, Stellantis plans to revitalize the historic Mirafiori plant in Turin—the birthplace of Fiat—by targeting an annual production goal of 100,000 units for the Fiat 500 hybrid. Data indicates that output from Italian factories has nearly halved compared to the recent peak of over 750,000 vehicles in 2023. The new CEO, Antonio Filosa, who took office last June, has repeatedly attempted to assure the government of the group's commitment to Italy—even as the company simultaneously invests heavily in the U.S. market.
Filosa revealed that the group committed over €7 billion (approximately $8.2 billion) in orders to suppliers with operations in Italy last year, while also investing €2 billion in its Italian production facilities. However, unions pointed out that a lasting production recovery ultimately depends on a rebound in market demand. In 2025, approximately half of the union members claimed unemployment benefits. Furthermore, the highly anticipated new strategic plan for the group has been delayed; originally scheduled for release in the first quarter of 2026, it has now been postponed to the second quarter.
Analysts at Oddo BHF believe the annual production target for the Fiat 500 hybrid may be overly ambitious. Compared to the previous generation, the new model has reduced power performance and was launched without an automatic transmission option initially, which could potentially limit its market appeal.
Comments