Stellantis Adjusts Operations Amidst Market Challenges in Italy

Stellantis has reached an agreement with unions to reduce working hours for over 1,800 employees at its Termoli plant in Italy due to weak market conditions and U.S. tariffs. The measure will last 12 months, replacing a previous scheme affecting fewer workers. Termoli's future remains uncertain amidst ongoing economic challenges.

Automaker Stellantis has entered into a new agreement with unions to reduce working hours for more than 1,800 employees at its Termoli facility in southern Italy. The decision comes in response to a challenging market environment and U.S. tariffs impacting operations.

The Uilm union, involved in the agreement, pointed towards tariffs imposed by the United States as a contributing factor. This arrangement, effective from September 1 for a 12-month duration, permits Stellantis to furlough Termoli workers for up to 80% of their contractual hours. It succeeds a prior scheme that impacted approximately 900 workers.

A Stellantis spokesperson confirmed the agreement's signing but offered no further specifics. The Termoli plant, producing petrol engines, faces uncertainty due to a weakened auto market, especially in Europe, and delayed new model introductions. Stellantis plans to produce dual-clutch transmissions for hybrid vehicles at Termoli next year; however, previous plans for an electric vehicle battery hub have been paused.