Automotive

Stellantis anticipates 500 hybrid, tough clash in the House with Tavares over Group commitments in Italy

The meeting of the Stellantis number one with part of the trade unions preceded the hearing in the Industry Commission - Gigafactory in Termoli confirmed but with revised timetable

by Filomena Greco

Carlos Tavares. (Photo by Robyn BECK / AFP)

5' min read

5' min read

It is a tough confrontation between Carlos Tavares and the parliamentarians who, during the hearing in the Industry Commission, ask the Stellantis CEO about the declining production volumes in Italy, the avalanche of redundancies, the drop in market registrations, and the Group's future commitments.

Tones become heated when Carlo Calenda reminds Tavares that Stellantis has lost more than 11,000 employees in recent years, when Conte accuses the CEO 'of being a liquidator' and calls for Parliament to hear from Group Chairman John Elkann. And again, Pd's secretary Schlein speaks openly of signs of the Group's disengagement in Italy, while the president of the IX Senate Commission of Fratelli d'Italia, Luca De Carlo, asks if Stellantis will respect the objectives of cutting emissions starting as early as 2025 thanks to Leapmotor's Chinese cars, "with the paradox that is being experienced in these days at Mirafiori, with workers called back from the redundancy fund to certify the Chinese cars and thus ensure their access to European sales channels".

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Tavares himself speaks of lividity and anger in the tones of many parliamentarians and recalls how the difficult situation in which the entire sector finds itself depends on 'the choices of the legislator and the regulations that Europe has imposed on the automotive world'. The Stellantis number one assures that "there is no intention of abandoning Italy" or of downsizing the weight of the brands on the Italian market, and defends the industrial plan presented to the unions, with allocations, plant by plant, up to 2030.

On the industrial plan, the most relevant news concerns the anticipation of production of the hybrid model of the Fiat 500 at Mirafiori, news confirmed first in the meeting with the unions and then in Parliament. The meeting with the Quadri, Fismic and Ugl unions in mid-morning preceded by a couple of hours the hearing of Carlos Tavares in the Industry Commission in the Chamber of Deputies. The Stellantis number one had actually invited all the trade unions to the meeting before the hearing in Parliament, but the confederates declined the invitation after asking the ceo to move the meeting after the 18 October demonstration called for the entire automotive sector.

Tavares speaks at 360 degrees about the Group's strategy, he circumscribes the difficulties to the American market, and for Europe he speaks of an increase in competitiveness on the market linked mainly to the difficulties of other manufacturers on the electric side. Tavares also confirms the Gigafactory in Termoli, but reiterates the need to reshape the terms 'in order to have a high-performance technology that is not obsolete'.

Stellantis Strategy

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Despite the difficulties, Stellantis has confirmed the targets set in the 2030 industrial plan, the trade unions report. Among the main projects is the introduction of hybrid versions on all models in the range, with an expansion of the Panda and bringing forward production of the 500 hybrid. In Melfi, production of models with hybrid engines will be brought forward to 2025. The company confirmed that the production of endothermic engines will also guarantee employment during the transition to electric. Lastly, greater autonomy for Maserati within the Stellantis group has been confirmed, while maintaining a strong integration with the rest of the company, to guarantee synergies and continuity in the growth of the brand; a desire to sell has been ruled out.

Looking ahead, Stellantis reiterated its ambition to double electric vehicle production by 2025-2026. However, Tavares acknowledged that demand in Europe remains limited, with countries such as Italy and Spain registering a market penetration of less than 5%. In the introduction to his speech, Tavares reiterated the Group's opposition to postponing the deadlines imposed by Europe, both in terms of emission cuts, which would come into effect as early as next year, and in terms of stopping endothermic engines, starting in 2035. There would be a problem related to environmental impact in general, says Tavares, while from the industrial point of view, the CEO of Stellantis speaks of negative repercussions on the sector because "it would give space and time to manufacturers in difficulty to catch up while Stellantis is already ready". Slowing down the process could therefore create a depreciation problem in the markets.

The CEO went on to explain to the trade unions that Stellantis' will is to maintain the motor models (Ice) while the electrification rump up phase is underway at a more moderate speed, given the strong uncertainties in the market, the CEO reiterated. 'This is not transition,' Tavares reiterated to the unions, 'we need resources to keep the old technology alive and resources to be allocated to the new technology. The risk, he reiterated, is that the financial requirements will be too high and the companies will not hold up.

The volume crisis and mobilisation

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The confederal metalworkers, Fim, Fiom and Uilm, will take to the streets, in Rome, on 18 October with a series of union delegations arriving from all over the world. Quadri, Fismic and Ugl, for their part, have called their own demonstration, but in Turin, again on 18 October on the occasion of the general strike in the sector, dedicated to the crisis in the car industry. 'This mobilisation is intended to underline the importance of the automotive sector for the Italian economy and the need for action to address current challenges, including the ecological transition and global market pressures,' write the general secretaries of the three unions, Giovanni Serra (Quadri), Roberto Di Maulo (Fismic) and Antonio Spera (Ugl).

On the one hand, therefore, the volumes of Stellantis down by 30% compared to a year ago and the prospect of stopping, at the end of 2024, below half a million between commercial vehicles and cars, on the other hand, the companies in the allied industries on their knees and the multinationals on the run. The latest alarm comes from Denso of Poirino, in the Turin area, a company active in the production of air conditioning systems for cars with 700 employees, in crisis also due to the drop in volumes of the 500 at Mirafiori. Out of 700 employees, the company has declared 150 redundancies and the unions have closed an agreement to activate solidarity contracts and avert the risk of redundancies.

"We are aware that 2025 will be a difficult year, where the most critical point of the transition will have to be faced. We need to ferry to 2026; if we want to protect employment and safeguard the automotive sector in our country, all parties involved must row together for the same goals. Stellantis confirms the plans for Italy, but there is a need for the government to create the right conditions to facilitate the positive outcome of the projects on Italy," declare the three general secretaries of AQCFR - FISMIC CONFSAL - UGLM.

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