by Key Facts
A Challenging Period for Stellantis
Stellantis has encountered another difficult period in Europe as weak demand is forcing the automaker to halt production at six of its plants. The timing for this is far from ideal. The company has already recorded a net loss of $2.65 billion in the first half of the year and is preparing for an additional $791 million hit due to tariffs imposed by President Donald Trump in the second half of the year.
Scale of the Production Halt
The scale of the pause underscores how sharply demand has slowed. Production of the Fiat Panda at the plant in Pomigliano near Naples will be stopped from September 29 to October 6. The same plant produces the Alfa Romeo Tonale, and its lines will be idle for longer – from September 29 to October 10. In total, approximately 3,800 employees will be furloughed for the duration of the site’s closure.
Stoppages at Other Plants
Additionally, Stellantis announced that production at its site in Poissy near Paris, which is responsible for the Opel Mokka and DS3, will be suspended from October 13 to 31. A company representative, commenting to Reuters, noted that they will use the downtime to carry out site work and organize a series of training courses.
Widespread Nature of the Problem
According to Bloomberg data, the disruptions will spread even wider, affecting Stellantis plants in Poland, two facilities in Spain, and its site in Eisenach, Germany. This is becoming one of the largest halts the group has faced in its European operations this year.
Company Statement and Strategy
In a statement, Stellantis explained that it is “adapting the production rhythm at some of its plants in Europe” to balance output with market conditions. The company stated that the goal is to carefully manage inventories by the end of the year while responding to weak demand across the region.
Deepening Sales Decline
The figures highlight the complexity of the task. In the first seven months of the year, Stellantis vehicle registrations in Europe fell by 8 percent, to 1.19 million units. It was also acknowledged that President Donald Trump’s tariffs have affected demand in the US for the Alfa Romeo Tonale. Stellantis added that the halt in Panda production coincides with an overall projected decline in orders from fleet and car rental companies in the latter part of the year.
These events are occurring against the backdrop of pan-European trends of transitioning to electric vehicles and economic uncertainty, creating additional pressure on traditional automakers. Production halts of this scale can have significant consequences for local economies in the regions where the plants are located, where thousands of workers find themselves on forced leave. Stellantis’s future decisions regarding cost optimization and adapting its model range to modern market demands will be crucial for overcoming the current crisis.
