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In the first half of 2024, Stellantis production in Italy dropped dramatically, highlighting a significant crisis for one of the world’s largest automotive groups.
According to the Fim-Cisl report presented by national secretary Ferdinando Uliano, the group produced 303,510 vehicles in the first six months of the year, down 25.2% compared to the same period last year. This drop follows a decrease already observed in the first quarter, when production fell by 9.8% compared to the first three months of 2023.
The collapse of cars and the resilience of commercial vehicles
The Fim-Cisl report highlights a significant difference between the different vehicle categories produced by Stellantis. Cars, in particular, suffered a dramatic drop of 36 per cent in the first half of 2024. This slump contributed substantially to the overall drop in production. In contrast, commercial vehicles grew slightly by 2%, showing resilience in a difficult economic environment.
Forecasts for 2024
Projecting the figures for the first half of the year onto the full year, Fim-Cisl forecasts that Stellantis will produce around 500,000 vehicles in Italy in 2024. This figure is significantly lower than the target of one million vehicles produced per year in Italy and represents a sharp drop from the 751,000 vehicles produced in 2023. These figures highlight the severity of the crisis the group is facing in the country.
Plant analysis: Pomigliano, Melfi and Mirafiori
A detailed analysis of the individual Stellantis plants in Italy reveals further details about the production crisis. The only plant that showed positive figures in the first half of 2024 is the Pomigliano plant, which recorded a 3.5 per cent increase in production. However, this increase is not sufficient to compensate the significant decreases observed in other key plants.
The Melfi plant, for example, suffered a 57.6% drop in production, a figure that reflects a particularly critical situation. Even more dramatic is the situation at Mirafiori, where production has plummeted by 63%. These numbers indicate serious operational and organisational difficulties within Stellantis, which could have far-reaching implications for the entire Italian automotive industry.
Causes of the crisis
Several factors can explain the decline of Stellantis’ production in Italy. Among them, the semiconductor crisis had a significant impact on the global production capacity of the automotive sector, including Stellantis. In addition, economic uncertainty and changing consumer preferences, which are increasingly shifting towards electric and hybrid vehicles, may have contributed to the decline in demand for conventional vehicles.
Another relevant factor is Stellantis’ corporate strategy, which may have led to a reallocation of production to other markets that are more competitive or less affected by the crisis. Recent resignations of key executives and internal reorganisations may have had a negative impact on the stability and efficiency of production.
Future prospects and recovery strategies
To face this crisis, Stellantis will have to implement targeted recovery strategies. Among these, the adoption of new production technologies and increased production of electric vehicles could be long-term solutions to revive production. Investments in research and development, together with strategic partnerships with semiconductor suppliers, could also help mitigate the effects of component shortages.
Restructuring of business operations and increased focus on emerging markets could offer further growth opportunities. Furthermore, ongoing dialogue with trade unions and local institutions will be crucial to find shared solutions that can support the recovery of the sector.
Conclusion
Stellantis production crisis in Italy in 2024 represents a significant challenge for the domestic automotive industry. With an overall drop of 25.2 per cent in production, a 36 per cent slump in cars and critical difficulties in the Melfi and Mirafiori plants, the group faces a complex situation. However, through innovative strategies and a strong commitment to restructuring and innovation, Stellantis can still hope to overcome these difficulties and restore its leading position in the automotive sector.
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