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Stellantis and the car stop: general strike of the automotive sector on October 18. Here's why

On October 18, 2024, the Italian automotive sector will stop for an eight-hour general strike. The demonstration in Rome, called by Fim, Fiom and Uilm, will involve workers from Stellantis and component companies. At the heart of the protests are the defense of employment and the request for structural interventions to guarantee a future for the sector

Stellantis and the car stop: general strike of the automotive sector on October 18. Here's why

It was expected and finally it arrived: the 18 October 2024 the whole Italian automotive sector will stop for one eight-hour general strike. Fim, Fiom and Uilm, the main sunion igloos of the sector, have called a protest that will involve not only Stellantis workers, but also those of the component companies. At the heart of the national demonstration, which will be held in Rome, are the defense of employment and the request for structural interventions to guarantee a future for the automobile industry in Italy.

“Eight-hour strike of the entire automotive sector with a demonstration in Rome on October 18, 2024 to defend employment and build the future of the auto industry,” declared the union representatives, underlining how the crisis does not only affect Stellantis, but the entire production system. The concerns concern the drop in production, the reduction of jobs and the difficulty in responding to the challenge of the transition to electric.

The crisis of Stellantis and the entire automotive sector

The situation in the Stellantis factories is particularly serious. According to the general secretary of Uilm, Rocco Palombella, "things are going very badly. We want to involve the Government, whose management of the crisis is very superficial". Despite government incentives to encourage the electrification of the vehicle fleet, Stellantis saw a 30% drop in sales over the course of the year. Overall production, however, fell dramatically, with 2023 marking the production of just 751.000 vehicles, compared to 911.000 produced in 2007, a reduction of 70%.

The transition to electric is not taking off

La transition to electric, supported by huge government investments, is not having the desired effect. The Electric car sales are down and production is unable to compensate for the decline in internal combustion engine vehicles. In addition, rising energy costs in Europe are a further obstacle for the sector.

To further complicate the picture, then, there is the news coming from from Germany, where the automotive industry is facing a similar crisis. Volkswagen is considering 15.000 layoffs and plant closures, while Mercedes-Benz cuts 2024 forecast due to difficulties in Chinese market.

Il future of the sector inevitably passes through the transition to electric, but the uncertainties on international markets further complicate the situation. While electric car sales are struggling to take off in Europe, the United States and China are protecting their industries with massive government investments. This is putting the European car industry in difficulty, as it struggles to compete with Chinese manufacturers.

The unions' demands: immediate and structural interventions

Fim, Fiom and Uilm ask urgent interventions by the Government and the European Union. “They are essential urgent interventions on strategic choicesand the sector by the EU, targeted industrial policies by the Government and serious and courageous industrial commitments by Stellantis and the component companies", the unions stated in the official press release. Among the proposals put forward, the unions underline the need to block layoffs, reduce working hours and support worker training.

even the components sector is in serious difficulty. Many small and medium-sized businesses in the sector have closed or moved abroad. The use of social safety nets is constantly growing, but in many cases the maximum limit has already been reached. The unions are therefore calling for direct involvement of the Government and the Presidency of the Council to develop a long-term industrial plan.

The Government and Stellantis: uncertainties and lack of results

The Minister of Enterprise, Adolfo Urso, stated that the Government's objective is "to strengthen the presence of Stellantis in our country, being the main and only car manufacturer". But, despite the incentives put in place for a value of one billion euros, the production did not increase as expected.

“We did what was asked of us at European level, remove Euro7 status, we have created a plan of extraordinary incentives that has allowed us to renew the car fleet and scrap the oldest and most polluting cars" reiterated the minister, "which is the response of national production is missing, as had been foreseen and announced. For this reason we are available always and in any case, and we continue our dialogue with the company practically every day, to support the car development plans in Italy and to support the sustainability of automotive investments in Europe, as we are about to do with a significant and concrete proposal that has had consensus in Europe", concluded Urso.

The unions agree that the government incentives for car purchases, as they were conceived, they did not produce the desired results. Rather, they ask for a business plan that guarantees the saturation of existing factories and supports the entire production chain. “We need a new pact for the automotive industry,” they say, with the entry of new producers and public investments that protect employment and respect Italian contractual regulations.

Meanwhile Stellantis announced yesterday the'arrival in Europe of the electric models C10 and T03 of the Chinese Leapmotor, marking the Leapmotor International joint venture debuts, in which Stellantis holds a majority stake (51%). The aim of the partnership is to expand global sales of high-tech vehicles at affordable prices.

Il Stellantis' future and the search for a new CEO

Meanwhile, Stellantis has started the Search for a new CEO, as Carlos Tavares' contract will expire in 2026. Although the company has clarified that this is a “normal succession process“, the news has caused a stir, not only in Italy but also in the United States, where the Group is facing significant difficulties, with falling sales and growing tension with local unions. The board of directors will meet in October to discuss the strategies to adopt to relaunch the business in North America.

The mobilization of October 18 could be only the first step of a long path of discussion between unions, companies and Government, for ssave a crucial sector for the national economy.

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