Stellantis Is Experiencing Declining Sales and Halting Production at Various Plants | Carscoops

      Several European car manufacturing plants will experience shutdowns this fall due to declining demand and thousands of workers being furloughed.

      Stellantis is set to furlough 3,800 employees at its factory in Pomigliano, located near Naples.

      Production stoppages will affect the Fiat Panda and Alfa Romeo Tonale models.

      Key facilities in Italy, Germany, France, and Poland will cease operations.

      Stellantis is encountering another challenging period in Europe as plummeting demand compels the automaker to suspend production at six of its plants. This situation comes at an inopportune time, following a reported net loss of $2.65 billion in the first half of the year and an anticipated additional hit of $791 million from tariffs implemented by President Donald Trump in the latter half of the year.

      The extent of the production pause underscores the severity of the demand slowdown. Production of the Fiat Panda at the Pomigliano plant will halt from September 29 to October 6. The same facility, which also produces the Alfa Romeo Tonale, will have its production lines idle for a longer period, from September 29 through October 10. Overall, approximately 3,800 workers will be furloughed during this shutdown.

      Additionally, Stellantis announced that production at its Poissy plant near Paris, which manufactures the Opel Mokka and DS3, will be paused from October 13 to October 31. A spokesperson for the company mentioned to Reuters that this downtime will be utilized for maintenance work at the site and for offering several training sessions.

      Widespread Factory Suspensions

      According to Bloomberg, this disruption will expand to Stellantis factories in Poland, two locations in Spain, and its site in Eisenach, Germany. This represents one of the most extensive slowdowns the company has faced in its European operations this year.

      In a statement, Stellantis indicated that it is “adjusting the pace of production at several of its plants in Europe” to align output with market conditions. The goal is to carefully manage inventory as the year comes to a close while addressing the weaker demand throughout the region.

      Decreased Sales Figures

      The figures highlight the difficulties ahead. In the first seven months of the year, Stellantis registrations in Europe decreased by 8 percent to 1.19 million units. The company also noted that President Donald Trump’s tariffs have negatively affected US demand for the Alfa Romeo Tonale. Stellantis added that the pause in production of the Panda coincides with an overall decrease in orders anticipated from fleets and rental car companies in the year’s final quarter.