I wrote last week about growing concerns in Italy over the EU’s EV mandate. These have been around for a while, as EV demand in the EU continues to disappoint and as 2025 brings with it the EU’s demand that automakers’ sales must include (at least) a certain percentage of EVs.
Stellantis (which in Italy includes Fiat, Alfa Romeo, Lancia, and Maserati) is now extending the production halt on its electric Fiat 500 in Turin from October 11 until the end of the month. That’s despite the model’s relative success within its category (city-car EV). The word relative is key here. It’s also worth noting because the pocket-sized 500e (a descendant of the legendary Cinquecento) is meant to be exactly the sort of car meant to appeal to urban EV users (small, good for quick drives, etc).
The labor unions are (understandably) increasingly worried.
“The level of job insecurity is unacceptable, and the entire automotive sector is on the brink of collapse. On 18 October, we’ll be in Rome to raise awareness of this emergency, which threatens to destroy one of Italy’s key industrial sectors,” said Luigi Paone of the Uilm union.
“The situation in Turin is growing more alarming, and this latest shutdown makes government intervention even more urgent to ensure stability for Italian plants,” he added.
The reference to government intervention could refer to the effort being made by the Italian government to slow down the drive to ban the sale of new traditional cars, or it could refer to handouts of taxpayer cash. The bigger bailouts seem set to come later.
Meanwhile:
Meanwhile, rumours of a possible merger with Renault and BMW have resurfaced. Although Stellantis chairman John Elkann dismissed similar speculation earlier this year, reports suggest that merger talks with Renault are back on the table as the companies face increasing pressure from Chinese electric vehicle manufacturers. The talks are now said to include BMW.
Such a merger would not mean more jobs.