Italy is no longer producing cars: stellantis production down 27 percent in the first half of 2024

Italy, once the cradle of the automobile, produces very few cars, and this is thanks to the fact that Stellantis has moved, or is moving, much of its production abroad.

Stellantis, the automotive giant, experienced a significant drop in production at its Italian factories during the first half of 2024. A FIM-CISL report revealed that only 303,510 vehicles rolled off the assembly lines, marking a 25.3% decrease compared to the same period in 2023. This decline was particularly pronounced in passenger car production, which plummeted by 35.9%. Commercial vehicle production, however, saw a modest increase of 2%.

The lone bright spot was the Pomigliano d’Arco plant, which reported a 3.5% increase in production compared to the first half of 2023. However, this growth has slowed considerably in recent months. The remaining four plants experienced substantial declines, particularly Mirafiori, which saw a staggering 63.5% decrease.

FIM-CISL attributes this downturn to several factors, including delayed incentives for electric vehicles and a negative rebound following a period of growth in 2023, once supply chain issues related to the pandemic and semiconductor shortages were resolved.

The Mirafiori production hub is struggling with declining volumes for the electric 500 and the continued decrease in Maserati production. Melfi and Cassino are also experiencing difficulties as they await the transition to the new Stla Medium and Stla Large platforms, scheduled for 2025.

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In more detail, Mirafiori produced only 19,510 cars in the first half of 2024, a significant drop from the 53,330 produced in the same period last year. 90% of these were 500 BEVs, with the remainder being Maserati models. Production at the Modena plant also plummeted by 73.3%, with only 160 cars produced compared to 600 in 2023.

Cassino experienced a 38.5% decline in production, totaling 15,900 units. The current production mix is 20% Alfa Romeo Giulia, 54% Alfa Romeo Stelvio, and 26% Maserati Grecale, including the full electric version. While the upcoming arrival of the STLA Large platform is seen as a positive development, unions are urging the company to accelerate the launch of new models to mitigate the current production slowdown.

Pomigliano, as mentioned earlier, saw a 3.5% increase in production. However, this figure is significantly down from the 26% growth reported in the first quarter of 2024. Panda production increased by 20% compared to the first half of 2023, but the Alfa Romeo Tonale and Dodge Hornet lines saw a 26% decrease.

Melfi experienced a sharp 57.6% drop in volume, producing 63,800 fewer units than in the first half of 2023. This transition phase is causing employment issues, leading to the renewal of a solidarity contract that expires in August 2024.

Finally, Atessa, the commercial vehicle production facility, saw a 2% increase in production, reaching 117,000 units in the first half of 2024.