Slow electric vehicle sales have forced Stellantis to extend the suspension of its Mirafiori factory until January 20 and February 3, according to Reuters. The Mirafiori assembly line is responsible for manufacturing the all-electric Fiat 500e, and the Maserati GranTurismo and GranCabrio Folgore. The automaker shut the assembly line down earlier this month due to low demand for those specific electric vehicles, particularly in Europe.
The Fiat 500e’s production halt is expected to last until the January date, while production of the Maseratis isn’t expected to resume until the February date. Trade unions confirmed the suspension after being addressed in meetings by representatives. This isn’t the first time that Stellantis temporarily ceased production at the Mirafiori facility. The company also shut the line down twice last year, once in September, and again in October.
Slowing Sales Continue To Plague Stellantis In Europe
According to Reuters, Stellantis’ total vehicle production count in Europe is expected to dip below 500,000 units annually, the lowest level since 1958. The FIM-Cisl union, or the Italian Federation of Metal Mechanics and Italian Confederation of Trades Union, predicted the new low after a sinking trend in 2023. Last year, Stellantis moved only 751,000 cars.
As observed over the last year, electric vehicles haven’t been selling as popularly as anticipated, leading to increasing inventory and the need to reassess production efforts. Lingering concerns about inconvenient and unreliable charging infrastructure, range anxiety, and high costs of entry continue to prevent electric vehicles from taking off.
It was just a few months back that former CEO Carlos Tavares blamed poor marketing on Maserati’s weak sales performance. Tavares, however, unexpectedly resigned earlier this month over apparent disputes within the company and the automaker’s future plans. Sales for the
are so slow that some dealers are offering outrageous discounts and leasing programs for the EV in a desperate bid to get rid of aging inventory.
Stellantis Presents Reworked Strategy To Boost Production In Europe
Earlier this week, Stellantis presented a new plan in Italy that would ideally boost manufacturing and production at its plants within the country, according to another Reuters report. The plan calls for a new investment of around €2 billion in its Italian facilities throughout 2025. Italy, in a cooperative agreement, reportedly pledged around €1 billion to improve the country’s auto supply chain, which is said to assist in the effort of boosting production. Stellantis’ new plan also hopes to secure production allocations up through 2032.
To compensate for slow electric vehicle sales, Stellantis also pledged to invest more into gas-electric hybrid vehicles as they’ve proved to be significantly more popular than strict EVs. However, Stellantis won’t be abandoning its electrification efforts entirely as it remains committed to its original plans.
According to the same report, Stellantis is considering hybrid versions of the Alfa Romeo Stelvio crossover SUV and Giulia sedan. The Italian company originally intended to make the next-generation models all-electric. Other potential hybrid models could include the next-generation Jeep Compass, Lancia Gamma, and DS7.
Adding salt to the wounds is a huge uptick in competition from Chinese-based electric vehicle manufacturers, while the threat of tariffs and potential impending regulatory changes from the incoming Trump Administration in the U.S. has the company in a bit of a limbo.
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