Published by Global Banking & Finance Review®
Posted on January 7, 2026
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleStellantis' car production in Italy dropped 20% in 2025, hitting a 71-year low, due to weak demand and competition.
By Giulio Piovaccari
MILAN, Jan 7 (Reuters) - Stellantis' vehicle production in Italy fell 20% year-on-year in 2025 to 379,706 vehicles, the FIM Cisl trade union said on Wednesday, expressing fresh worries for the future of the national auto industry.
Prime Minister Giorgia Meloni's government said in 2023 it wanted Stellantis to increase Italian auto production to 1 million units per year, but the automaker's output has instead kept on shrinking.
In 2025, the production of passenger cars - excluding light commercial vehicles - fell 24.5% year-on-year to 213,706 units, the lowest level since 1954, FIM Cisl head Ferdinando Uliano said, presenting his union's report.
Italy is home to some of Stellantis' historic brands, including Fiat and Alfa Romeo, and Stellantis is the country's sole major auto producer. The company was not immediately available for comment.
2025 RESULT NOT AS BAD AS FEARED
Stellantis' Italian output has almost halved from around 751,000 units in 2023 due to weak market demand in Europe, especially for electric vehicles, delays in the launch of new models, and increasing competition from Chinese rivals.
However, the slump in output for 2025 was less severe than previously anticipated. FIM Cisl had forecast full-year production of just over 310,000 units in October, when it provided production data for the first nine months.
"The result could have been worse," Uliano said, adding the launch of the hybrid version of the Fiat 500 city car at the Mirafiori plant and of the new Jeep Compass SUV in Melfi in the fourth quarter helped to recoup part of the lost output.
"Light commercial vehicles also gave a positive contribution... in the fourth quarter," the union said.
FIM Cisl said the Fiat 500 and Jeep Compass, as well as other new models expected this year - the DS7 and Lancia Gamma family cars - should help bring this year's output above 2024 levels.
Bouncing back to the higher levels hit in 2023 would largely depend on production holding up in other plants such as Cassino and Pomigliano, which are producing older models such as the Alfa Romeo Giulia and Stelvio, and the Fiat Panda, the union said.
New versions of the Giulia and Stelvio, initially scheduled for 2025, have been postponed.
(Reporting by Giulio Piovaccari, editing by Alvise Armellini)
Vehicle production refers to the process of manufacturing automobiles, including cars, trucks, and other vehicles, typically involving assembly lines and various manufacturing techniques.
A trade union is an organization formed by workers to protect their rights and interests, negotiate wages, working conditions, and benefits with employers.
Passenger car output is the total number of passenger vehicles produced by a manufacturer within a specific time frame, often measured annually.
Manufacturing decline refers to a decrease in the production of goods in the manufacturing sector, often leading to job losses and economic challenges in affected areas.
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