(Bloomberg) — Stellantis NV Chief Executive Officer Antonio Filosa is meeting with Italian labor unions on Monday as weak demand prompts the maker of Fiat and Alfa Romeo cars to pause output at several factories.
Unions such as FIM-CISL and Fiom have said they want Filosa to clarify his intentions for manufacturing in Italy after a prolonged slump in local car production raises questions over the future of sites such as Cassino and Termoli. They also want more clarity on plans for the ailing Maserati brand.
Late last year, Stellantis pledged to make new models the overhauled Fiat 500 small car in Italy as part of a push to repair relations with government following the tenure of former CEO Carlos Tavares, who had pushed to move production to cheaper countries such as Morocco. A few days after his ouster, Stellantis pledged to invest €2 billion ($2.3 billion) in Italy this year.
Stellantis didn’t immediately respond to a request for comment to on the meeting.
Like its rivals, Stellantis is contending with excess capacity in Europe, where Chinese manufacturers led by BYD Co. are expanding with competitively priced cars. The company has committed to €6 billion in orders from local suppliers and vowed to shut down no Italian plants.
In Europe, Stellantis has temporarily shut down several sites because of lackluster demand for some models, with repercussions on local suppliers. Forvia on Monday said it’s facing costs of “several tens of millions of euros” in sales this year because of the production stoppage.
Filosa has scraped some European investments and vowed to invest $13 billion in the US, a critical market, over the next four years, further adding to European unions worries.
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