The Italian automotive sector is facing a steady decline in production and an increasing dependence on government holiday programs as Stellantis continues to reduce both production and employment. According to a Stellantis study conducted by the Fiom-Cgil trade union, which Kallanish reviewed, the trend described as a strategy of "escape from Italy" highlights the country's declining role in the concern's European industrial strategy.
The automaker has reduced the number of staff in line with production volumes that have declined in recent years. According to the union, the number of staff decreased from 37,288 in 2020 to 27,632 in 2024. In two decades, the production of Stellantis passenger cars and light commercial vehicles in Italy has almost halved. Total production has dropped from almost 1.2 million units in 2004 to just 659,000 in 2024. An equally drastic reduction is observed in the production of powertrains, where engine production at the group's Italian plants decreased by 534,700 units over the same period.
Another sign of Italy's declining role is the release of new models. Despite several recent launches in the mass segment, none of them are produced domestically. The Fiat Topolino is available in Morocco, the Fiat 600 and Alfa Junior in Poland, the new Panda in Serbia, and the new Lancia Y in Spain.
Fiom-Cgil argues that the reduction in Stellantis production in Italy cannot be explained solely by a decrease in demand. The union points to a steady decline in the group's market share both domestically and across Europe. In Italy, the share of Stellantis decreased from 35.23% in 2022 to 29.13% in 2024. The downward trend continued in 2025, when the figures for the first half of the year showed a further decrease to 29.2% compared with 32.1% for the same period in 2024.
CEO Antonio Filhos "inherited a dramatic situation resulting from the failed strategy of Carlos Tavares and the ownership of the company," Fiom-Cgil Secretary General Michel De Palma said in a report. "We call for a direct dialogue with Filosa to determine an industrial plan that should include new models for the mass market, as those announced at the moment are not enough to maintain factory productivity."
Italy is working with the Anfia Automobile Association and Stellantis to restart the sector and increase production to 1 million vehicles per year by 2030. The so-called "automotive round table", organized by the Italian Ministry of Entrepreneurship and Manufacturing (Mimit), has so far provided only purchase incentives that are unable to cope with the structural crisis in the industry. Real industrial policy is necessary to protect
