Stellantis CEO Carlos Tavares Pledges Full Capacity for Italian Plants by 2030

Stellantis CEO Carlos Tavares has committed to ensuring that all of the company's Italian plants will operate at full capacity by 2030. This announcement was made during his visit to the Melfi plant in southern Italy on June 4, 2024, following a period of temporary lay-offs and concerns about the company's production strategies.

Stellantis' commitment to full operational capacity in Italy has significant implications for the country's economy and job market. This move could lead to increased production and employment opportunities, and a boost to the local economy.

Tavares emphasized the constructive dialogue with trade unions, stating that the discussions had been 'productive in a spirit of mutual respect.' He assured that there would be 'full operations for everyone' and that there is 'no problem' regarding the activity levels at the Italian sites.

The commitment comes amidst tensions between Stellantis and the Italian government over the automaker's declining output in the country. Rome has criticized the company for shifting production of some Fiat and Alfa Romeo models to lower-cost countries.

Stellantis plans to introduce new models, including hybrid versions of the Fiat 500 and Jeep Compass, to support production in Italy. The company employs around 43,000 people in the country, though this number could decrease this year as a result of voluntary redundancies.

Tavares also highlighted the high costs of energy in Italy, describing them as 'totally uncompetitive' and 'more than double' what they should be compared to other countries. This issue poses a significant challenge for the company's operations in the region.

In addition to addressing energy costs, Stellantis and the Italian government are in discussions to increase the country's vehicle production to one million units by the end of the decade, up from approximately 750,000 last year. Tavares stressed the need for 'one million customers' to achieve this target.

The announcement of full operational capacity by 2030 aims to provide stability and reassurance to the workforce and interested parties in Italy. Tavares praised the trade unions, calling them 'mature and responsible people.'

Stellantis' commitment to its Italian plants signifies a strategic move to maintain its presence in the country while addressing the challenges posed by energy costs and global competition. The company's efforts to introduce new models and enhance production capacity reflect its dedication to sustaining its Italian operations.

Carlos Tavares' visit to the Melfi plant and his assurances of full operational capacity emphasize Stellantis' long-term vision for its Italian sites. The company's strategy is shaped by its commitment to Italy, a crucial element in the face of the global automotive industry's complexities.

Key Takeaways

• Stellantis CEO Carlos Tavares commits to full capacity at Italian plants by 2030.
• This move aims to boost Italy's economy and job market.
• New models, including hybrid Fiat 500 and Jeep Compass, to support production.
• Tavares criticizes Italy's high energy costs as "totally uncompetitive".
• Stellantis targets 1 million vehicle production in Italy by the end of the decade.