Stellantis Production Crisis Deepens in Early 2025
Stellantis, the multinational automotive manufacturerformed by the merger of Fiat Chrysler Automobiles and PSA Group, has reported asevere production decline for the first quarter of 2025. According to data fromFim-Cisl trade unions, the company's total production plummeted by 35% comparedto the same period last year.
The automaker produced just 109,900 units in Q1 2025,including both passenger cars and commercial vans, down from 170,415 units inQ1 2024. This significant contraction highlights the deepening challengesfacing one of the world's largest automotive manufacturers.
Passenger Cars Hit Hardest
The decline was particularly pronounced in the passengercar segment, which experienced a dramatic 42.5% year-on-year reduction, withoutput falling to just 60,533 vehicles. Commercial van production, whileperforming relatively better, still declined by 24.2% to 49,367 units.
According to the union reports, the production declineaffected all of Stellantis' manufacturing facilities, suggesting systemicissues rather than localized problems at specific plants.
Workforce Impact and Future Outlook
The production crisis is having severe implications forStellantis' workforce, with temporary layoffs now affecting nearly 50% of thecompany's employees. The union's outlook suggests that the downward trend isexpected to continue in the upcoming quarters, indicating that the company'schallenges are far from resolved.
This production collapse follows what was already adifficult 2024, when Stellantis reported a 45.7% year-on-year decline inpassenger car production, with total output of just 283,090 units. A union noteobtained by Kallanish starkly observed: "We have to go back to 1956 to getsuch a low output figure."
The combined production of passenger cars and commercialvehicles in 2024 fell by 36.8% compared to 2023, totaling 475,090 units. Theunion projections indicate that all plants are expected to show continueddecline throughout 2025.
Leadership Changes and Strategic Shifts
The production crisis comes in the wake of significantleadership changes at Stellantis. Former CEO Carlos Tavares resigned followingunion protests over the company's industrial plan. Current Chief Executive JohnElkann and Chief Operating Officer of Enlarged Europe Jean-Philippe Imparatohave suggested that changes made to the industrial plan in response to theseprotests could lead to a notable production increase in 2026, potentiallyreturning to levels seen in 2023.
Despite the current challenges, Stellantis is maintainingits long-term target of achieving 1 million tonnes of output by 2030. Thecompany has also committed to investing €2 billion ($2.3 billion) in itsItalian plants in 2025, signaling a determination to address the productionissues and strengthen its manufacturing base in Italy.
Key Takeaways:
• Stellantis production plunged 35% in Q1 2025 compared toQ1 2024, with total output of 109,900 units
• Passenger car production fell 42.5% to 60,533 units,while commercial van production declined 24.2% to 49,367 units
• All manufacturing plants reported production declines,with temporary layoffs affecting nearly 50% of the workforce
• The production collapse follows a 45.7% year-on-yeardecline in passenger car production in 2024, reaching levels not seen since1956
• Leadership changes include the resignation of former CEOCarlos Tavares following union protests over the industrial plan
• Current executives suggest production could increase in2026, potentially returning to 2023 levels
• Stellantis maintains its target of 1 million tonnes ofoutput by 2030 and plans to invest €2 billion in Italian plants in 2025
• The production decline represents a significant demandshock for steel suppliers and other companies in Stellantis' supply chain
• Union projections indicate continued production declinesacross all plants throughout 2025
