Stellantis Italy Production and Job Cuts Deepen Amid Market Share Decline

Stellantis is facing mounting pressure in Italy as labor union FIOM-CGIL highlighted worsening conditions related to employment, production volumes, market share, and industrial costs during a review held on May 20. The union stated that the automaker has experienced substantial workforce reductions over the past five years while several production facilities continue to operate far below their installed capacity. The situation reflects broader challenges for the company across both Italy and Europe, where declining sales and changing industrial priorities have increased financial strain on manufacturing operations.

According to the union, Stellantis lost 12,265 jobs out of a workforce of 30,046 employees over the last five years. The reductions included 3,700 redundancies during 2024 and another 2,352 exits in 2025. In early 2026, an additional 1,048 voluntary exit requests were recorded. FIOM-CGIL stated that nearly 56% of workers are currently supported through social safety programs. The union expressed concerns that continuous downsizing could further weaken manufacturing activity and reduce the long-term stability of automotive production sites across Italy.

The company has also witnessed a significant decline in market share across Europe and its domestic market. Between 2020 and 2025, Stellantis reportedly lost 6.1 percentage points of market share in Europe, representing approximately 620,000 vehicles. Within Italy, vehicle sales declined by around 122,000 units while market share fell by 11.2 percentage points during the same period. The union indicated that lower production volumes and weakening demand are placing additional pressure on several assembly plants and component manufacturing facilities.

Stellantis Italy Asset Write-Downs and Industrial Costs

Financial pressures have also intensified due to industrial restructuring activities. In 2025, Stellantis recorded more than EUR 243 million in write-downs related to plant assets in Italy. Since 2021, cumulative write-downs have exceeded EUR 1.3 billion. The company additionally allocated EUR 977 million for future risks and set aside more than EUR 1.1 billion linked to potential supplier disputes. According to the union, these financial impacts are associated with canceled industrial projects, reduced electric vehicle production targets, platform-related write-downs, and supply chain restructuring initiatives.

Vehicle Production Performance Across Italian Plants

During the first four months of 2026, Stellantis produced 150,349 vehicles in Italy, including 79,063 passenger cars and 71,286 commercial vehicles. Several plants continued to operate below their maximum production capabilities, prompting union representatives to request stronger industrial commitments and additional product programs to stabilize manufacturing utilization rates.

Stellantis Italy Plant Production Overview Jan-Apr 2026

The union specifically called for a new Ducato model for the Atessa facility and urged management to relaunch Maserati production in Modena through the introduction of new vehicle programs. FIOM-CGIL emphasized that sustained investment in product development and manufacturing allocation will be necessary to maintain employment levels and improve production efficiency at underutilized plants.

Engine and Transmission Plant Capacity Concerns

FIOM-CGIL also highlighted declining utilization rates at powertrain manufacturing facilities. The Termoli plant currently has annual capacity for 465,000 engines but produced approximately 295,000 engines during 2025. At Pratola Serra, annual capacity stands at 650,000 engines while output reached around 400,000 units in 2025. The Verrone transmission plant has annual capacity for 350,000 transmissions but produced approximately 223,000 transmissions during the year. The union stated that future industrial plans should support full utilization of these facilities while maintaining compatibility with multiple propulsion technologies.

Frequently Asked Questions

Why is Stellantis facing production and employment challenges in Italy?
Stellantis is facing production and employment challenges in Italy due to declining market share, lower vehicle demand, industrial restructuring, and reduced plant utilization rates. The company has also implemented workforce reductions and asset write-downs linked to canceled projects, EV production adjustments, and supply chain restructuring measures. Labor unions have expressed concerns that continued downsizing and underused manufacturing facilities could further weaken automotive production capacity and long-term industrial stability across multiple Italian plants.

Which Stellantis plants in Italy are operating below capacity?
Several Stellantis manufacturing plants in Italy are currently operating below their installed production capacity, according to FIOM-CGIL. Facilities including Mirafiori, Cassino, Melfi, Modena, and multiple powertrain plants reported lower output levels during 2025 and early 2026. The union highlighted concerns regarding reduced vehicle assembly volumes, lower engine and transmission production, and insufficient utilization of manufacturing infrastructure. It has called for additional vehicle programs, stronger investment commitments, and broader propulsion system support to improve plant activity.