Stellantis Adjusts Production Capacity Across Key European Facilities Amid Sluggish Market

Stellantis is scaling back production at two major European plants as automotive demand continues to soften across the continent. The automaker's facilities in Poissy, France and Pomigliano, Italy will undergo temporary shutdowns beginning late September, marking a strategic response to declining sales momentum in the region.

The Italian Pomigliano plant, located near Naples, will cease production of the Fiat Panda from September 29 through October 6, with Alfa Romeo Tonale manufacturing suspended until October 10. This production pause will result in approximately 3,800 workers being placed on temporary furlough. Concurrently, the French Poissy facility will halt production operations from October 13 to October 31, impacting roughly 2,000 employees. The Poissy plant manufactures the DS3 and Opel Mokka compact SUVs, both key models in Stellantis's European portfolio.

Market headwinds provide crucial context for these manufacturing adjustments. European car registrations remained essentially flat during the first seven months of 2024, hovering around 7.9 million units compared to the same period a year prior. However, Stellantis brands experienced steeper pressure, with registrations declining 8% to 1.19 million units during this timeframe. The company attributed additional challenges facing the Alfa Romeo Tonale to U.S. tariff pressures, which have reduced demand for the model in a critical market segment.

These production halts reflect broader industry challenges as automakers navigate weak consumer demand and international trade complications, requiring temporary workforce adjustments to align manufacturing capacity with market realities.