The Italian automotive sector is facing a sustained contraction in output and an increasing reliance on state-backed furlough schemes, as Stellantis continues to scale back both production and employment. According to a study on Stellantis conducted by the Fiom-Cgil union and seen by Kallanish, the trend, described as a strategy of “escaping Italy,” highlights a diminished role of the country within the group’s European industrial strategy.
The automaker has downsized its workforce in line with reduced production volumes in recent years. Union data show headcount falling from 37,288 employees in 2020 to 27,632 in 2024. Over two decades, Stellantis’ car and light commercial vehicle production in Italy has been cut by nearly half. Total output fell from almost 1.2 million units in 2004 to just 659,000 in 2024. The contraction is equally stark in powertrain operations, where engine production volumes declined by 534,700 units over the same period across the group’s Italian plants.
A further sign of Italy’s diminishing role is the allocation of new models. Despite several recent launches in the mass-market segment, none are being manufactured domestically. The Fiat Topolino is built in Morocco, the Fiat 600 and Alfa Junior in Poland, the new Panda in Serbia, and the new Lancia Y in Spain.
Fiom-Cgil argues that Stellantis’ shrinking output in Italy cannot be explained solely by weaker demand. The union points to a steady erosion of the group’s market share both domestically and across Europe. In Italy, Stellantis’ share dropped from 35.23% in 2022 to 29.13% in 2024. The downward trend continued into 2025, with first-half figures showing a further decline to 29.2%, compared with 32.1% in the same period of 2024.
Ceo Antonio Filosa “has inherited a dramatic situation, the result of the failed strategy of Carlos Tavares and the company’s ownership,” Fiom-Cgil secretary general Michele De Palma says in the report. “We are calling for a direct dialogue with Filosa to define an industrial plan that must include new mass-market models, as those announced so far are insufficient to keep plants running at capacity.”
Italy is working with automotive association Anfia and Stellantis to relaunch the sector and boost production to 1 million vehicles per year by 2030. The so-called “automotive roundtable” promoted by the Ministry of Enterprises and Made in Italy (Mimit) has so far delivered only purchase incentives, which are incapable of addressing the structural crisis in the sector. Real industrial policies are necessary to protect and relaunch the automotive sector, also encouraging the new manufacturers to invest.
“Without new investments, it will be impossible to revive car manufacturing in Italy. At the European level, we are calling for a special public fund to help the industry emerge from the crisis and to boost not only research and development but also production and employment,” De Palma says. This should include the option for member states to acquire equity stakes in companies while public resources should be made available exclusively to firms that do not lay off workers or relocate production.
Stellantis is set to pause production at several European plants in response to weak car demand and the downturn in the European automotive sector. The stoppages, scheduled between late September and October, will last from one to three weeks depending on each site and car model. Facilities involved include Poissy in France, Pomigliano in Italy, Eisenach in Germany, Tychy in Poland, and both Zaragoza and Madrid in Spain (see Kallanish 25 September).
Stellantis was not available to comment before press deadline.
Natalia Capra France
