Stellantis 1H Italy car production down 33.6% y/y: union

Stellantis 1H Italy car production down 33.6% y/y: union

Stellantis, the global automaker formed from the merger of Fiat Chrysler and PSA Peugeot, reported a significant decline in Italy car production for the first half of 2025. According to data from the Italian Automobile Manufacturers Association (ANFIA), total car registrations in Italy decreased by 33.6% year-over-year (y/y) during the period, marking a substantial downturn for the company [3].

The primary factors contributing to this decline include low market demand, particularly for electric vehicles (EVs), increased competition from Asian manufacturers, and production stoppages due to new model launches. These challenges have led to a significant reduction in the number of vehicles manufactured in Italy, with Fiat, one of Stellantis' key brands, experiencing a notable decrease in production.

Fiat, under the leadership of Olivier Francois, has been focusing on the hybrid 500 model to revive its ailing production in Italy. Francois stated that the new hybrid 500, priced at €17,000, aims to manufacture over 100,000 units per year. This model is part of Stellantis' strategy to diversify its product offerings and meet the growing demand for hybrid vehicles [2].

However, the transition to electric vehicles (EVs) remains a challenge for Stellantis. Despite plans to introduce an upgraded and more affordable version of the 500 EV in 2027, the automaker faces operational and regulatory hurdles. The company's reliance on ICE (internal combustion engine) plants, like the Atessa facility, and the lack of flexibility in repurposing these plants for EV production pose significant obstacles.

The decline in Italy car production highlights the broader challenges faced by the auto industry in meeting stringent EU CO2 emission targets. Stellantis must navigate these regulatory pressures while also addressing market demands and operational inefficiencies. As the industry shifts towards electrification, automakers like Stellantis must prioritize regulatory agility and EV scalability to avoid potential fines and maintain investor confidence [1].

References:
[1] https://www.ainvest.com/news/stellantis-emissions-crossroads-litmus-test-auto-industry-resilience-2507/
[2] https://www.marketscreener.com/quote/stock/STELLANTIS-N-V-117814143/news/Stellantis-bets-on-17-000-euro-hybrid-Fiat-500-to-revive-ailing-Italian-output-50431772/
[3] https://www.marklines.com/en/statistics/flash_sales/automotive-sales-in-italy-by-month