Italian multinational automotive manufacturer Stellantis will slow down operations at its Mirafiori plant, in Turin, this and next month in response to weak market demand for its fully-electric Fiat 500 small car and Maserati models, a spokesman for the automaker told Reuters. The stoppages will last until March 30, adding to a previously announced furlough period for about 2,250 workers at the plant from February 12 to March 3, the spokesman said.
However, except for February 12, when the plant will be totally stopped, Mirafiori was expected to operate on a reduced rate of one eight-hour daily shift, instead of the two regular ones, for the period. Stellantis, however, has the option to totally stop activity at the facility if demand should prove even weaker in the coming weeks, he added.
As per a union source, Reuters reported that some 300-350 people are expected to be on furloughs every week out of a total of around 1,250 workers making the electric Fiat 500 and a further 1,000 producing Maserati models. Some workers will be temporarily absorbed by other productive departments at Mirafiori.
Last week, Italy launched a new plan, worth 950 million euros (USD 1 billion) for this year, to help drivers switch to cleaner vehicles. As part of it, the cuntry plans to subsidise purchases of fully-electric cars up to 13,750 euros. The company’s CEO Carlos Tavares last month said that Mirafiori, the historic home of Fiat, was among the plants which had been suffering the most from a so far penny-pinching approach by Rome to auto incentives.
In a separate development, the automaker denied a possible French-led merger with rival Renault. The company’s Chairman John Elkann confirmed that there are no M&A plans as speculated by media. “There are no plans being studied regarding mergers of Stellantis with other manufacturers,” he said in a statement, adding that the group was focused on the execution of its long term business plan.
The statement comes after Italian daily Il Messaggero reported that the French government, which is Renault’s largest shareholder and has a stake in Stellantis, was studying a merger plan between the two groups.