Earlier this year, Fiat announced it would increase production of the Panda by about 20 percent to meet customer demand, saying the model was a "market leader in Italy and segment leader in Europe." This prompted Fiat CEO Olivier Francois to confirm that production at the Pomigliano d'Arco plant would continue until at least 2027. It seemed like smooth sailing ahead for the city car that's been a staple in Italian garages for decades.
But fast forward just eight months, and it looks like Stellantis, Fiat's parent company, is having second thoughts. The automaker is hitting the pause button, with plans to temporarily halt production next month due to " tough market conditions." Citing the automaker, Reuters reports that work stoppages are planned at the Pomigliano d'Arco, Termoli and Pratola Serra plants.
The work stoppages are scheduled to begin on November 11 and will apparently continue for several days throughout the month. Both Panda production and engine assembly will be affected.
The move comes shortly after Stellantis put the brakes on the Mirafiori plant, which builds both the Fiat 500e and the Maserati GranTurismo.
While the production halt suggests weak demand, the Panda is actually doing quite well. In July, Fiat noted that the model was the best-selling vehicle in Italy as it generated over 63,500 sales for a 21% increase year-over-year. Still, Stellantis said the pause was necessary because they're facing a "path requiring difficult choices and offering no easy solutions."
Source: Reuters
