Biplab Das 
In the first quarter of this year, production of passenger cars and vans at Stellantis’ Italian plants saw a decline of 9.8% year-on-year, reaching 170,415 units. This setback comes amidst the automaker’s discussions with the Italian government to revitalise production in the country and achieve ambitious growth targets.
Aiming for one million units
Stellantis is engaging in talks with the Italian government to reverse the declining trend in production and restore it to one million units by the end of the decade, implying a substantial growth of around 25% compared to last year’s output. However, the first quarter data indicate a deviation from this target, according to Ferdinando Uliano, head of FIM-CISL.
Challenges faced
Several factors have contributed to the decline in production, including delays in Italy’s new auto purchase incentive scheme and soft global demand for fully-electric vehicles. The production rates of Fiat’s 500 BEV small car particularly suffered, with a 51% decrease in output at the Mirafiori plant.
Factors influencing output goals
Stellantis has outlined that achieving the one million unit target hinges on various factors, including the effectiveness of auto purchase incentives, reduced energy costs, and the development of an electric vehicle charging network. These elements play a crucial role in shaping the trajectory of production growth.
Projected output for 2024
Based on first-quarter data, the union forecasts a full-year output for Stellantis in Italy of 630,000 vehicles in 2024, down from 751,000 units last year. This projection, however, does not account for the government’s auto purchase incentives, which are expected to come into effect this quarter.
Optimism amid challenges
Despite the challenges, Uliano expressed confidence that the forecast could improve over the year, particularly with the anticipated impact of government incentives. Stellantis estimates that incentives could potentially boost unit sales for the 500 BEV by 20,000 in 2024.
Stellantis’ pursuit of revitalising Italian production underscores the complexities faced by automakers amid evolving market dynamics and regulatory frameworks.
