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Ride Radar > Blog > Manufacturing > Stellantis extends production halt
Manufacturing

Stellantis extends production halt

Last updated: December 14, 2024 9:16 am
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Stellantis has announced an extension of its production stoppage at the Mirafiori plant in Italy, with the halt now lasting until January 20, 2025. The decision, reported by the FIOM-Cgil trade union, is yet to be officially confirmed by the company. Stellantis is currently evaluating its order books for January and refrained from commenting on the media speculation surrounding the extension.

The two-week extension follows an earlier halt that was set from December 2 to January 5 for the production of the electric Fiat 500. The decision comes in response to ongoing challenges with weak market demand for electric vehicles (EVs) in Europe.

The Mirafiori facility, known for producing Maserati sports models, has faced several production suspensions throughout the year due to low sales of these vehicles. While production of the Fiat 500 and other models will be paused, parts of the plant, including administrative offices and research sites, will continue to operate.

The broader industry is also facing concerns as automakers navigate fluctuating demand for EVs and the impact of global economic conditions. Stellantis’ challenges at Mirafiori are further compounded by the recent decision to close its Luton plant in the UK, which has been producing Vauxhall vehicles for nearly 120 years.

In addition to production challenges, Stellantis recently saw CEO Carlos Tavares resign amid strategic disagreements. While Tavares had initially planned to retire in 2026, the board accepted his resignation immediately. The company also reported a 20% drop in third-quarter shipments, particularly in North America, prompting corrective actions to reduce inventory.

See also  Honda shifts focus to hybrid vehicles

As Stellantis continues to navigate these challenges, the automotive industry as a whole is facing a period of uncertainty and transformation. Stay tuned for further updates on Stellantis and the evolving landscape of the global automotive market.

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