Stellantis' Italian factory is Mired in a capacity winter

Stellantis' Italian factory is Mired in a capacity winter: production continues to collapse and may set the worst record in 70 years

On the European automotive industry map, Stellantis' business in Italy is experiencing an unprecedented cold spell. According to the data disclosed by the Italian Metalworkers' Union (FIM Cisl) on July 8th, the total vehicle production of this automotive giant in Italy in the first half of 2025 was only 221,885 units. Compared with the same period in 2024, it dropped significantly by 26.9%, with both the passenger car and commercial vehicle markets under pressure - passenger car production plummeted by 33.6% year-on-year to 123,905 units, and commercial vehicle production also declined by 16.3% to 97,980 units, outlining a continuously deteriorating industrial picture.

The judgment of the trade union secretary, Ferdinando Uliano, is even more pessimistic: The production decline in 2025 will far exceed that of 2024, with the annual output likely to fall below 250,000 units, a figure that may set a new low since 1956.Looking back at the trajectory of the crisis, the collapse of Stellantis' production capacity in Italy was not an unexpected event. The decline that emerged in 2024 served as the trigger: the total output for that year plummeted from 751,384 units in 2023 to 475,090 units, a drop of 37%. Among them, the production of passenger vehicles decreased by 46% year-on-year, hitting the historical low since 1956 ahead of schedule.Specifically at each production base, the Mirafiori plant in Turin (the core production area for models such as the Fiat 500) has seen its output cut by 70%.the Maserati plant in Modena saw a decline of 79%, while the Cassino plant (the production base of Alfa Romeo) dropped by 45.5%.the Pomiliano factory (Dodge Hornet production line) plunged by 80% and was nearly at a standstill.

Entering 2025, the downward curve has yet to narrow.Production in the first quarter plunged by 35.5% year-on-year, reaching only about 110,000 units. Although the specific data for the second quarter has not been released yet, the trade union disclosed that "the decline was basically the same as that of the first quarter. "This means that the output in the first half of the year has been locked into a deep recession zone. Uliano warned that due to the postponement of the mass production plan for new models to 2026, the annual output in 2025 might be less than 250,000 units, a further 48% drop from 2024, and the rate of decline would further accelerate.

Facing the continuously deteriorating production capacity crisis, Stellantis proposed a "market rescue plan" in December 2024 - committing to invest 2 billion euros (approximately 2.1 billion US dollars) in Italy in 2025, focusing on the production of new models and technological upgrades. Facing the continuously deteriorating production capacity crisis, Stellantis proposed a "market rescue plan" in December 2024 - committing to invest 2 billion euros (approximately 2.1 billion US dollars) in Italy in 2025, focusing on the production of new models and technological upgrades. But this plan was sharply questioned by the trade union. Uliano stated straightforwardly: "Of the 2 billion euros in investment, the majority of the funds were directed towards factory renovations rather than direct expansion. The time window for the mass production of new models will not be until 2026. For the capacity predicament in 2025, it is clearly a case of 'a distant solution to a immediate one. From the perspective of the industrial cycle, Stellantis' predicament in Italy reflects the typical growing pains of traditional automakers during their transitional period, the gap between the iteration of new and old products, the changes in market demand structure and the misalignment of the pace of capacity adjustment have jointly pushed this century-old automotive group into the most severe capacity test in its 70-year history.