ROME (Reuters) – Stellantis (NYSE:) announced novel transient shutdowns at two of its plants in southern Italy on Wednesday as the carmaker continues to suffer from frail demand for its products.
The company said in two separate statements that it had informed trade unions about the interruption of production at the Termoli engine plant on December 16-22 and at the Cassino car plant on November 29. During downtime, employees will be sent on transient leave.
Stellantis, whose Italian brands include, among others, Decree (BIT:) and Alfa Romeo said they were determined to “ensure the continuity” of their operations in Italy, but noted that they faced “a difficult path requiring difficult choices and offering no easy solutions.”
The company faces industry-wide challenges, including low demand for more steep electric cars and competition from China. It is also grappling with bloated inventory, which has forced it to lower its profit and cash flow forecasts.
In Italy, production has been suspended several times this year, including: at its historic Mirafiori factory in Turin, but last week Stellantis promised it would not close factories in the country or make mass layoffs.
