ROME (AP) — Workers in Italy’s automotive sector will go on strike on Oct. 18, the main metalworkers unions said Tuesday, in protest of declining output from Stellantis, the biggest carmaker in the country.
The unions also called for a national demonstration in Rome on the same day.
Stellantis, which was created in 2021 from the merger of Fiat-Chrysler with PSA Peugeot, registered a sharp drop in output at most of its Italian plants in the first half of 2024, according to data provided by the FIM-CISL union.
Projections are now for just over half a million vehicles produced by Stellantis in Italy in the full year, down from 751,000 in 2023, the union said.
Over the past 17 years, the struggling carmaker has slashed its Italian production by nearly 70%.
Stellantis, which counts the Jeep and Ram trucks among its brands, is currently looking for a new CEO to succeed Carlos Tavares, in what the company described as a normal leadership succession plan. The company added that it’s possible Tavares will stay on longer.
Tavares oversaw the merger of PSA Peugeot and Fiat-Chrysler but has come under fire from U.S. dealers and the United Auto Workers union after a dismal financial performance in the first half of the year.
Its North American operations had been the company’s main source of profits, but they have struggled this year amid larger market changes.
In Italy, Stellantis has been in talks for months with the right-wing government over plans to increase output there, but no agreement has been reached so far.
In a statement issued later Tuesday, Stellantis confirmed its commitment to finding “shared solutions to address the challenges regarding the automotive sector.” The group also stressed that the energy transition is a priority that can no longer be postponed and requires “huge and urgent measures” aimed at reducing production costs.
“We are confident that close collaboration with trade unions and the Italian government will allow us to find effective and sustainable solutions for our common future, transforming this crisis into an opportunity,” it added.