Stellantis Rethinks European Gigafactory Plans Amid EV Market Challenges

The Automotive Cells Company (ACC), backed by Stellantis, halted plans for gigafactories in Italy and Germany due to challenges in the electric vehicle market. The decision follows a significant cost-cutting move by Stellantis as they recorded substantial financial losses. Stellantis remains committed to their initiatives in France.

The Stellantis-backed Automotive Cells Company (ACC) has abandoned plans to construct gigafactories in Italy and Germany, the Italian metalworkers' union UILM reported on Saturday. This marks a significant shift in Stellantis' strategy as it navigates the evolving electric vehicle industry.

Initially, ACC planned to establish three major facilities in Europe. However, recent developments reveal the shelving of projects at Termoli, Italy, and Kaiserslautern, Germany, due to unmet conditions since May 2024. The joint venture, partially owned by Stellantis, is exploring alternative scenarios while maintaining operations in France.

Stellantis faced a record 25.2% stock plunge, attributed to a 22.2 billion euro charge linked to halting electric-vehicle advancements. Despite these setbacks, Stellantis reassures its ongoing commitment to engine and gearbox production in Italy, promising job retention for current employees.

(With inputs from agencies.)