ROME (AP) — Workers in Italy’s troubled automotive sector will hold their first national strike in two decades on Friday, with a massive demonstration held in central Rome.
The strike, called by the sector’s three main unions, comes as tensions rise between global carmaker Stellantis and Italy’s far-right government, which accuses the carmaker of moving assembly plants to low-wage countries.
Stellantis, the world’s fourth-largest automaker, is under global pressure to provide clarity on its future production plans as the company faces increasing competition and financial tensions.
The multinational group, which was formed in 2021 from the merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop in production at most of its Italian factories in the first half of 2024. Over the past seventeen years, the car manufacturer has drastically reduced its production volume. Italian production by almost 70%.
CEO Carlos Tavares recently blamed EU carbon emissions rules for raising production costs, suggesting the group may be forced to close some assembly plants to face competition from China. He said he “couldn’t rule out” job losses, and reiterated the need for additional government incentives to boost demand for electric cars.
Stellantis, which makes Jeep and Chrysler cars, was in the spotlight after a profit warning in which the company said it would end the year with a loss of up to 10 billion euros ($11.2 billion).
Tavares is also under fire from U.S. dealers and the United Auto Workers union after dismal financial performance this year after being overwhelmed by too many expensive vehicles on dealer lots. He has tried to cut costs by delaying the opening of factories, firing union workers and offering buyouts to salaried workers.
The group announced in September that it was looking for a successor to the 66-year-old Tavares as part of a planned leadership change. Tavares’ five-year contract expired just over a year past its expiration date in 2026, but the company hinted at the time that it was possible he would remain in the role beyond that.
