Stellantis Adjusts Termoli Plant Operations Amid Market Challenges

Carmaker Stellantis has reached a deal with unions to reduce working hours for over 1,800 employees at its Termoli plant in southern Italy, responding to a weak auto market and U.S. tariffs. The scheme, effective from September 1, allows up to 80% furlough. Termoli's future is uncertain amid delayed new model introductions and paused electric vehicle battery hub plans.

Stellantis, the global car manufacturer, secured an agreement with unions on Monday to implement a flexible work arrangement for more than 1,800 employees at its Termoli plant in southern Italy. The arrangement, prompted by a sluggish market and U.S. tariffs, allows workers to be placed on reduced hours for up to 80% of their contractual time over the next year.

This new scheme replaces a previous one which affected around half the workforce and expired earlier this month. A Stellantis representative confirmed the updated agreement, although specifics were not disclosed. The Termoli facility is crucial for producing petrol engines, but with soft auto market conditions persisting, particularly in Europe, concerns about the plant's future remain significant.

The production at Termoli has also been impacted by U.S. tariffs, as engines manufactured there were exported to America for use in Jeep Compass SUVs. Further complicating the plant's future is the delay in new model launches and the pause on developing an electric vehicle battery hub, despite prior plans announced by the Stellantis-backed ACC joint venture.

(With inputs from agencies.)