The automotive giant says it's a necessary move. In a statement, Stellantis explained, "The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric (car) market by all producers, particularly the European ones."
This isn't the first time Stellantis has had to cut back on production. The company has faced issues before, including a shortage of components like batteries and lower-than-expected demand. Earlier this year, between February and April, Stellantis reduced working hours at its Italian plant.
The electric car market in Europe is going through a tough phase. Many countries have stopped or paused their subsidy programs for electric vehicles. As a result, car makers are finding it hard to sell their electric models.
Despite these challenges, Stellantis isn't giving up on its electric future. The company still aims to sell only electric cars in Europe by 2030. They're working hard to manage this difficult transition period.
Looking ahead, Stellantis plans to invest 100 million euros in its Mirafiori facility. This investment will help give the Fiat 500e a more powerful battery and develop a new hybrid version of the Fiat 500. The company expects to launch these improvements between 2025 and 2026.
The current production pause is set to last four weeks.
Source: Reuters
