Italy's FIM Cisl union on Wednesday revised its vehicle production outlook for Stellantis (NYSE:STLA) in Italy for the current year due to a recent deceleration in the market.
Presenting Stellantis' Italian production data for January to September, the union now anticipates the company's Italian output to reach approximately 730,000 vehicles in 2023.
While this represents a 6.4% increase compared to 2022, it falls short of the 800,000 vehicle projection that FIM Cisl had put forth three months ago when presenting the automaker’s Italian production data for the first half of the year.
Union official, Ferdinando Uliano said the decreased forecast reflects a general market slowdown in recent months.
"It's affecting all models produced in Italy, especially the fully electric 500," he said.
Uliano added that buyers have also been delaying purchases while waiting for new government incentives.
Due to reduced demand, Stellantis confirmed a temporary suspension of operations at its Mirafiori plant in Turin from late October to early November. This facility is responsible for assembling the 500 BEV small car and Maserati models.
The Italian government is actively pursuing a comprehensive, long-term strategy for its automotive sector in collaboration with Stellantis, the nation's primary automobile manufacturer (known for producing Fiats), as well as other automotive groups.
During these discussions, the Italian government is advocating for Stellantis to increase its annual production in Italy to one million vehicles, a milestone the company last reached in 2017.
However, there is some confusion regarding this goal, as Stellantis typically includes vans in its count when referring to one million vehicles. By contrast, Industry Minister Adolfo Urso has consistently emphasized achieving one million cars.
Uliano clarified that achieving a target of one million passenger cars in Italy would require doubling the current production levels.
Shares of STLA are up 3.47% in premarket trading Wednesday morning.