Stellantis Halts Production in Europe Amid Weak Market Demand

In a strategic move addressing plunging demand, Stellantis has announced a temporary halt in production at its Poissy plant in France and Pomigliano in Italy. The action, affecting thousands of workers, is set to begin at the end of September and may extend for up to three weeks, as the automotive industry faces challenging market conditions across Europe.

The company's Pomigliano facility near Naples will cease production of the Fiat Panda from September 29 to October 6 and the Alfa Romeo Tonale until October 10, putting 3,800 workers on furlough. Similarly, the Poissy plant, which employs 2,000 staff, will halt activities from October 13 to October 31. The French site produces the DS3 and Opel Mokka small SUVs. This pause is intended to better align production rates with current market demands.

Stellantis reports a decline in market performance, with a significant 8% drop in brand registrations between January and July compared to the previous year. Additionally, external factors such as U.S. tariffs have adversely affected orders for the Alfa Romeo Tonale. The company emphasizes a cautious approach, planning to utilize this downtime for stock management, workforce training, and production optimization.