Q2018 8,5 production data from FCA's final plants report an XNUMX% reduction compared to the record data obtained in the last quarter of 2017, marking a decline after 4 years of continuous growth, which was already seen in the sales data on the Italian market in the first months of 2018. 2017 represented the best figure in terms of volumes since the period pre-crisis of 2013 with a +76%.
Here the analysis of the national secretary of the FIM-CISL, Ferdinando Uliano:
The effect of the slowdown in volumes seen in the last quarter of 2017 dragged on into the first three months of 2018 - underlines Ferdinando Uliano, national secretary of the FIM-CISL - confirming the decline that the sales data of the sector in our country have already highlighted in the first months of the year. The adaptation of the production of the Italian plants to market trends was already seen in the first part of the year with the lengthening of the holiday period between Christmas and the Epiphany for almost all the plants, then saw requests for shutdowns follow with the use of a few days of ordinary layoffs or greater use of the solidarity contract in the two factories, Mirafiori and Pomigliano, where it is still in use.
However, some productions continue to show growth even compared to the record first quarter of 2017, in particular they concern the productions of FIAT Professional – Sevel, the productions of the Stelvio SUV and the small Melfi, Renegade and 500x SUVs. The production situation of the Turin production hub, with Maserati productions, was instead affected by the slowdown at the end of the year imposed by the change in regulations on the Chinese market, which led to a reduction in stocks at dealerships, and by a decline on the market. The same situation also occurred on the production volumes of Alfa Romeo Giulia.
The effect on employment - highlights Uliano - does not go in the direction that we all hoped for with the completion of the 2014-2018 plan, i.e. the elimination of the use of social safety nets in Italian factories. We are certainly not in the pre-industrial plan situation where the use of social shock absorbers involved over 27% of FCA's 66.200 employees and over 32 million hours of shock absorbers were used, today shock absorbers weigh just over 6/8% of the force Work. As we already highlighted in 2017, given the wait for the launch of the premium car in Pomigliano, the second car from Mirafiori and the car that should replace the Punto in Melfi, the employment goal (zero shock absorbers) by 2018 will not be achieved ”.
And this was solely due - underlines the Fim secretary - to the failure to implement the investments necessary for the launch of these cars in the last period of the 2014-2018 industrial plan.
The Group has grown in profitability on the Italian plants thanks to the greater weight of the premium brands and this will allow the full achievement of the financial objectives. After all, the medium-high range cars produced in our country in 2012 represented only 20% of the volumes (volumes which were half of those of last year) while in 2017 they reached 64%.
As FIM-CISL, we reiterate financial balance, it is important because the ability to invest is linked to this, but for us it is essential to give continuity and use the resources produced to complete investments and improve the range of offers, the types of new hybrid and electric engines and pushing on new mobility.
The presentation of the new industrial plan scheduled for June 1st is an important and strategic appointment for the positioning and future of the FCA group and the Italian plants and it is necessary to deal not with announcements, but with investments and new products starting from the employment priorities we have; from the production center of Turin, Pomigliano d'Arco, Melfi, Modena to the last Italian factory.
- Production Center of Turin
In the final part of 2017 and in the first months of 2018, the Turin production hub with the Mirafiori and Grugliasco plants was affected by the slowdown in production.
The total production of the three Maseratis in the first three months of the year reached the quota of over 15.563 cars, while the Alfa Romeo MiTo reached around 4.075 units.
The Maseratis suffered a decline which was particularly evident on the Chinese market, due to changes in the rules relating to exports from stock, which began at the end of 2017 and continued into the first months of the year. This led to a greater use of holidays to lengthen the closure at the beginning of the year and the subsequent use of further CIGO and CDS days. While at Maserati we expect a recovery in volumes and the signals are already being felt for the next few months, for Mi.To the situation is certainly more worrying, because volumes for a mass-consumption car have decreased too much. Therefore, if we consider that the implementation of the second model at Mirafiori has not started, the consistent decline of the small Alfa Romeo (MiTo) and the situation of exhaustion of social safety nets this has led us in recent days to forcefully request a confrontation with the management FCA on the prospects of the Turin production hub, starting with the implementation of all the initiatives necessary to prepare the workers, through an extraordinary training plan and preparatory training for the new production which will be communicated on June XNUMXst.
- Maserati Modena
The Modena plant shows growth compared to the volumes of the previous year determined in particular by the volumes of the two Maserati models. Approximately 656 units were produced in the first three months, thanks to the new Maserati GT and Gran Cabrio models made with the investments made in 2016.
It was a positive choice to invest to continue the production of the two Maserati models in Modena, even if we know that it is not decisive, therefore it will be important that the industrial plan identifies a new specific model to be produced in the Modena site. The biggest concerns are determined by the uncertainty that the two models can continue production beyond 2018.
- FCA Cassino
Production of Stelvio with around 8.600 units is up compared to the quarter of the previous year, above all due to the effect that the real production increase in 2017 began in the third month. Overall, the slowdown seen at the end of 2017 and the first two months of 2018 seems to be over, here too resort was made to the use of a few days of collective holidays and a few hours of ordinary layoffs.
However, there has been a trend reversal in recent periods, so much so that this allowed the recruitment of 31.1.2018 temporary workers on 300.
- FCA Melfi.
In the first three months of 2018, the plant produced more overall than in 2017. In particular, the positive results can be found on the 500x and Renegade, which together reached 81.341 units. The Fiat Punto instead marks a -32% compared to the previous year. It is essential to continue the continuous improvement of the two mini SUVs, which proves to be a winning strategy to continue to strengthen volumes, certainly with the adaptation of future hybrid and electric engines it will be possible to give a further boost. Now it is essential to identify the productive alternative to the Punto, where over a thousand workers are employed today and where production will be stopped within the year. The industrial plan will have to provide a solution in this regard.
- FCA Pomigliano
After the production record achieved in 2016 and 2017, exceeding the quota of 200.000 Fiat Pandas, the first three months of 2018 were affected by the drop in volumes on the Italian market and the production stoppages at the beginning of the year and a more consistent use of the CDS. Approximately 2018 units were produced in the first quarter of 43.500 compared to approximately 60.000 in 2017.
Even with a possible recovery in Panda volumes, however, it will not solve the problem of full employment for the 4700 workers at the Campania plant.
The decision to invest in Pomigliano in 2012 by bringing production of the new Panda avoided the closure of the Campania plant and the consequent layoffs, but the prospects for the Campania plant are premium models starting from those Alfa Romeo or Jeep if the group intends to strengthen its production presence in Europe with other Jeep models. In the Campania plant we have a serious problem of volumes and exhaustion of the shock absorbers, this is even more so given that the new Fiat Panda model from 2020 does not seem to be produced in the Pomigliano plant. This means that to guarantee full occupancy without the use of shock absorbers as early as that date, there should be two premium models produced in the Campania plant.
The top management of FCA must interrupt this continuous wait - Uliano reiterates - for the premium project in the Campania plant. The continuous postponements with respect to the real start of new investments in the premium model are no longer sustainable and we are not even reassured by the fact that the coverage of the social safety nets reaches until July 2019. The safety nets are necessary to accompany the investments and the industrial plan must indicate strict and precise times for the start of productions.
- Sevel-Atessa
For the first quarter of 2018, the leading Fiat Professional plant also achieved a further increase from 75.000 in 2017 to 77.000 in 2018, aiming to further improve the 2017 production record of 292.000 vans. In the last 4 years the growth was 43,2%, thanks to the important investments made in the Abruzzo plant, this also determined a positive effect on employment. Since April, 32 workers have been hired on permanent contracts and our goal is to stabilize the more than 350 temporary workers currently employed in the Atessa plant with new hires.
The production data for the first quarter of 2018, – underlines Ferdinando Uliano – adds even greater significance to the meeting on 1 June on the industrial plan of the group.
The financial objectives of the 2014-2018 plan will certainly all be largely achieved, thanks to an overall increase in profitability determined by a production mix oriented more towards the medium-high range, in particular with the relaunch of Alfa Romeo, Maserati and Jeep production. The medium-high range productions of the Italian plants reached 64%.
This high profitability must now be oriented towards achieving the goal of full employment, completing the investments which envisaged the production of other models, which have instead suffered a postponement with respect to the 2014-2018 plan. Starting already in 2018 with the implementation of these investments will have no effect on the achievement of the financial objectives.
The overall capitalization of the three companies FCA, CNHI and Ferrari has also grown tremendously, all the more so the Agnelli family and CEO Marchionne must make this extra effort on investments to achieve the goal of full employment in the short term.
The situation of slight decrease in volumes certainly causes concern and increases our attention. The FCA management has repeatedly reiterated that this is a temporary situation and that an overall recovery should already take place over the next few months of 2018. The recent news on the growth and recovery of the American market and the reduction of duties on the Chinese market are certainly positive also for Italian productions, which have seen those markets as the main recipients of sales of the Alfa Romeo, Maserati, Jeep and 500x brands.
As FIM-CISL we will continue with determination in FCA our union and contractual action which has allowed us to leave behind and overcome one of the most difficult periods, bringing automotive production to be one of the main driving sectors of the industry and economy of our country but for us the main objective remains full employment and for that we will continue to fight with all our energies.
