(Bloomberg) -- Stellantis NV will halt production of the electric Fiat 500 model in Turin, Italy over the next month due to a lack of orders in Europe.
Europe’s EV market is “in profound difficulty,” the carmaker’s Italian unit said Thursday.
The European auto industry faces a steep downturn, and Stellantis has been eying job cuts in Italy as sales have declined. Rival Volkswagen AG has weighed closures in Germany for the first time in its history, while France’s Renault SA has warned that carmakers could incur fines if they don’t meet ambitious European Union climate goals.
Italian government officials, citing the challenging market conditions, have called for a review of the EU’s plan to ban sales of new internal combustion engines from 2035.
Stellantis, created out of the 2021 merger between Fiat Chrysler Automobiles and France’s PSA Group, has slashed jobs and cut capacity at US factories after a plunge in sales there sliced first-half earnings nearly in half.
©2024 Bloomberg L.P.