Workers in Italy’s troubled auto sector will go on a nationwide strike for the first time in 20 years, with a mass demonstration in Rome, according to AP News.
The three main unions announced the strike. It comes amid rising tensions between global carmaker Stellantis and the Italian government, which accuses the automaker of relocating assembly plants to low-cost countries.
Stellantis, the world’s fourth-largest carmaker, faces worldwide pressure, as it struggles with growing competition and financial challenges. The multinational group, established in 2021 by the merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop in production at most of its Italian plants in the first half of 2024. Stellantis cut production in Italy by nearly 70 per cent over the past 17 years.
CEO Carlos Tavares recently blamed EU carbon rules for rising production costs. He suggested that the group might be forced to close some assembly plants facing competition from China. Tavares also “could not rule out” job cuts, stressing the need for more government incentives to boost demand for electric vehicles.
Stellantis, which makes Jeep and Chrysler vehicles, has been in the spotlight after reports that the company could end the year with a loss of €10bn ($11.2bn). Tavares was also criticised by US dealers and auto workers’ union after dismal financial results this year. Stellantis is trying to cut costs by delaying the opening of factories, sacking unionised workers and offering buyouts to salaried employees.
In September, the group announced it was looking for a replacement for Tavares as his contract expires in 2026. However, the company announced that he could keep his position beyond that.
