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Stellantis extends furlough scheme at Italian plant on weak demand, tariffs
Published by Global Banking and Finance Review
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
Stellantis extends its furlough scheme at the Termoli plant in Italy, affecting over 1,800 workers due to weak demand and U.S. tariffs.
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MILAN (Reuters) -Carmaker Stellantis on Monday agreed a scheme with unions allowing it to place the more than 1,800 workers at its Termoli plant in southern Italy on reduced hours due to a weak market outlook.
The Uilm union, one of those involved in the agreement, also cited the impact of U.S. tariffs as a factor.
As part of the scheme, which will run for 12 months from September 1, the carmaker can put Termoli's workers on furlough for up to 80% of their total contractual hours in the period. It replaces a previous scheme, which expired this month but affected only around 900 workers.
A spokesman for Stellantis confirmed the agreement was signed on Monday, without giving further details.
Termoli, in southern Italy, makes petrol engines for the group.
A soft auto market, especially in Europe, as well as the long time until the introduction of new models and parts, makes the outlook uncertain for the plant, said Francesco Guida, of the Uilm union.
Guida added one of the engines made in Termoli, the production of which involves some 500 workers at the plant, had until now also been shipped to the United States to be fitted on the Jeep Compass SUV assembled there and is now subject to tariffs imposed by President Donald Trump.
"This will definitely have an impact on activity in Termoli," he said.
Stellantis earlier this year assigned to Termoli the production of dual-clutch transmissions for hybrid vehicles, but that is not scheduled to start before next year.
Termoli had been also earmarked by the Stellantis-backed ACC joint venture for the creation of one of its three European electric vehicle battery-making hubs, but the plan was officially paused last year.
(Reporting by Giulio PiovaccariEditing by Keith Weir)
A furlough scheme is a temporary leave of absence from work, often initiated by an employer due to economic downturns, allowing employees to retain their jobs while receiving reduced pay or benefits.
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