Stellantis Faces Global Challenges, Considers Plant Suspensions

Stellantis is grappling with a 20% decline in consolidated shipments for the third quarter due to high inventory levels and product transitions. The company plans to suspend activities at several plants in Italy amid difficult market conditions, low demand for electric vehicles, and increased competition from China. European dealers have requested a delay in EU carbon reduction targets, which contrasts with CEO Carlos Tavares's commitment to these goals. Tavares has suggested the possibility of plant closures and brand eliminations due to industry pressures, including potential overcapacity from Chinese competition. In the UK, Stellantis is assessing its future operations in response to strict zero-emission vehicle mandates. The company is navigating a challenging period, balancing overcapacity risks and regulatory demands with strategic adjustments.