Italian autoworkers go on strike, as troubled Stellantis faces pressure over production plans

ROME (AP) — Workers in Italy’s troubled automotive sector are holding a national strike on Friday for the first time in 20 years, with a massive demonstration being held in the center of Rome.

The strike, called by the sector’s three main unions, comes as tensions rise between global automaker Stellantis and the Italian far-right government, which accuses the car-making giant of relocating assembly plants to low-cost countries.

Stellantis, the world’s fourth largest automaker, is under pressure globally to provide clarity about its future production plans as it faces growing competition and financial strains.

The multinational group, which was created in 2021 from the merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop in output at most of its Italian plants in the first half of 2024. Over the past 17 years, the carmaker has slashed its Italian production by nearly 70%.

CEO Carlos Tavares has recently blamed EU carbon emission rules for raising production costs, suggesting that the group may be forced to close some assembly plants to face competition from China. He said he “could not rule out” job cuts, reiterating a need for additional state incentives to spur demand for electric cars.

Stellantis, which makes Jeep and Chrysler vehicles, has been in the spotlight following a profit warning in which it said it expected to finish the year with a loss of up to 10 billion euros ($11.2 billion).

Tavares has also been under fire from U.S. dealers and the United Auto Workers union after a dismal financial performance this year, after being caught off guard by too many high-priced vehicles on dealer lots. He has been trying to cut costs by delaying factory openings, laying off union workers and offering buyouts to salaried employees.

The group in September announced that it was looking for a successor for 66-year-old Tavares as part of a planned leadership change. Tavares’ five-year contract was a little over a year from its expiration date in 2026, but the company hinted at the time it was possible he might remain in the job beyond that.