Stellantis to Pause Production at Major Plants in France and Italy Amid Weak Car Demand

Stellantis, the automotive powerhouse formed by the merger of Frances Groupe PSA and Fiat Chrysler, has announced a suspension of vehicle assembly at two of its vital European factories. Production at the Poissy site, located to the west of Paris, and the Pomigliano plant near Naples, will be halted in response to waning demand for their Vauxhall and Fiat vehicle lines across the continent.

Approximately 6000 workers are now facing temporary furloughs as the company seeks to align production with sluggish European market conditions. Poissy, home to manufacture of the Vauxhall Mokka and DS models from Citroën, will close its production lines from 13 October to 31 October. Operations at Pomigliano, which builds the Fiat Panda and Alfa Romeo Tonale, will be shut between 29 September and 10 October.

This move highlights the ongoing financial instability within Stellantis. The business has been grappling with a backlog of unsold cars, particularly from its American operations, which has only added to the difficulties caused by weak European sales. In the first seven months of the year, deliveries across Europe slipped by 1 per cent to 136000 vehicles, with market share declining to 14.9 per cent from 16.1 per cent the previous year.

Vauxhall, in particular, has witnessed its UK market presence dwindle to a record low of 4 per cent. Market experts attribute some of these challenges to the companys efforts to shift towards electric vehicles, a strategy out of step with current consumer appetite for zeroemission motoring.

The leadership crisis at Stellantis reached a turning point last year when chief executive Carlos Tavares departed following disagreements about the groups future direction. The uncertainty at the top has compounded the challenges facing the automaker as it strives to reconcile major investment in new technologies with softening demand and deteriorating sales volumes.

Stellantis now finds itself at a strategic crossroads The success of its adaptation in a rapidly changing automotive landscape will hinge on its ability to better manage production and stimulate greater appeal for its evolving model line up among European motorists