European car demand sluggish causing multiple factories to halt production, Stellantis (STLA.US) CEO to meet with Italian labor union.

Stellantis (STLA.US) CEO Antonio Filosa will hold talks with Italian unions on Monday. Due to weak demand, the car manufacturer has temporarily halted production at several factories. Unions such as FIM-CISL and Fiom have stated that they hope Filosa will explain the company's manufacturing plans in Italy. With long-term low local car production, there are concerns about the future of factories such as Cassino and Termoli. Unions also hope that Filosa can further clarify the company's plans for the struggling Maserati brand. In Europe, Stellantis has temporarily closed several factories due to low demand for certain car models, leading to a chain reaction affecting local suppliers. Car components supplier Forvia stated on Monday that it is facing "tens of millions of euros" in losses this year due to the production standstill. Filosa has cut some European investments and promised to invest $13 billion in the key US market in the next four years, further exacerbating concerns of European unions. At the end of last year, Stellantis promised to produce a new version of the Fiat 500 compact car in Italy to repair relations with the government. Former CEO Carlos Tavares had previously pushed to move production to lower-cost countries such as Morocco. Shortly after Filosa took office, the company promised to invest 2 billion (approximately $2.3 billion) in Italy this year. Like its competitors, Stellantis is facing an issue of excess production capacity in the European market, while Chinese car manufacturers led by BYD Company Limited are expanding their market share in Europe with competitive prices. The company had previously pledged to place 6 billion in orders with local suppliers and assured that no Italian plants would be closed.