Italian Autoworkers Go On Strike, As Troubled Stellantis Faces Pressure Over Production Plans

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italian autoworkers go on strike as troubled stellantis faces pressure over production plans

Workers in Italy's troubled automotive sector are holding a national strike on Friday for the first time in 20 years, with a massive demonstration being held in the center of Rome.

The strike, called by the sector's three main unions, comes as tensions rise between global automaker Stellantis and the Italian far-right government, which accuses the car-making giant of relocating assembly plants to low-cost countries.

Stellantis, the world's fourth largest automaker, is under pressure globally to provide clarity about its future production plans as it faces growing competition and financial strains.

The multinational group, which was created in 2021 from the merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop in output at most of its Italian plants in the first half of 2024. Over the past 17 years, the carmaker has slashed its Italian production by nearly 70.

CEO Carlos Tavares has recently blamed EU carbon emission rules for raising production costs, suggesting that the group may be forced to close some assembly plants to face competition from China. He said he "could not rule out" job cuts, reiterating a need for additional state incentives to spur demand for electric cars.