Back to the '50s: Stellantis production in Italy hits historic lows

The collapse in output reignites tensions with the government. Between new models, promised investments and Chinese competition, the group is searching for a difficult turnaround.

Stellantis’ car production in Italy fell in 2025 to levels not seen since the mid-1950s. According to data released by the FIM-CISL union, total volumes – including passenger cars and commercial vehicles – dropped by 20% compared with the previous year, to 379,706 units. Passenger car production alone stood at 213,706 vehicles, a figure even lower than in 1955, when Fiat built nearly 231,000 cars in the country.

The final outcome would have been even worse without the rebound recorded in the last quarter of the year. Through September, car production was down 36% year on year. The late recovery was driven mainly by the launch of the new hybrid Fiat 500 at the Mirafiori plant and by the start of production of the new Jeep Compass in southern Italy, models intended to replace ageing product lines.

Even so, the overall picture remains bleak. All Italian plants, with the exception of Mirafiori, reported double-digit declines. The situation in Melfi was particularly severe, with output almost halved. Overall, national production has dropped by about half from a recent peak of more than 750,000 vehicles in 2023, a far cry from the more than 1 million units Italy consistently produced until just a few years ago.

The issue has become highly political. Prime Minister Giorgia Meloni’s government has repeatedly urged Stellantis to strengthen its industrial presence in Italy, following production shifts abroad decided under former CEO Carlos Tavares. The new chief executive, Antonio Filosa, who took office in June, has sought to reassure Rome by announcing €2 billion in investments in Italian plants and more than €7 billion in orders for domestic suppliers.

However, several uncertainties loom over the future: competition from Chinese carmakers, the arrival in Europe of Leapmotor models, and unresolved decisions regarding struggling plants such as Cassino and Termoli. The bet on the hybrid Fiat 500 – with a target of 100,000 units a year – currently represents the main lifeline for Mirafiori. The new strategic plan expected in the first half of the year will determine whether that will be enough to truly revive Italy’s auto industry.

Andrea Pelucchi