Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Stellantis EV output in Italy falls short as buyers wait for incentives - union

Published 05/01/2024, 11:08
Updated 05/01/2024, 17:36
© Reuters. FILE PHOTO: The Stellantis logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo

MILAN (Reuters) -Stellantis produced many fewer fully-electric 500e cars in Italy than planned last year, the FIM CISL union said on Friday, as buyers waited for the government to roll-out purchasing incentives for electric vehicle (EVs).

The automaker, home to brands including Fiat, Peugeot and Chrysler, made 751,384 vehicles in Italy last year, up 9.6% from 2022, FIM CISL leader Ferdinando Uliano said during the union's annual press conference on Stellantis' production in Italy.

The increase was driven by commercial vehicles, which helped to outweigh a 49% drop in the production of Maserati sports cars and the impact of a 20-day halt in production at the Turin plant that manufactures the 500e in the final part of the year.

Only 77,000 500e cars were made last year, against the more than 90,000 forecast at the start of 2023.

Uliano said EV incentives the government announced several times last year, but has yet to implement, prompted buyers to hold off, adding he expected them to be rolled out soon.

A lack of charging infrastructure is also curbing the EV market, the union added in a statement.

Sales of electric cars in Italy account for only around 4% of the total, compared with the European average of about 14%.

Uliano said the eventual rollout of the buying incentives should provide a boost this year, and the launch of the 500e in the United States should also help lift its production.

In December, the government said it planned to allocate 930 million euros ($1 billion) to help lower-income householders buy cleaner cars, such as EVs and hybrids, produced in Italy.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

While the incentives aim to support demand by covering part of the cost of the purchase, Uliano said the government had reassured unions that they would translate into increased production at some of Stellantis's plants in Italy.

The government has also said it wants to lift domestic production of cars and vans to at least 1 million a year by 2028.

To that end, Rome will work to encourage other automakers to manufacture in Italy, where Stellantis is currently the sole manufacturer, Urso said.

($1 = 0.9134 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.