Thursday, April 3, 2025

Car factory stands still – production stops again, again

Stellantis' Mirafiori factory, which builds Fiat and Maserati in Turin, Italy, is once again at a standstill. This time, peak production is being extended until the end of January.

Car manufacturer Stellantis has once again decided to extend the production stoppage at its Mirafiori factory in Italy.

The factory, which produces, among other things, the Fiat 500e and cars from the luxury brand Maserati, has been affected by a prolonged period of declining sales figures and unstable demand.

In September, the first production stop for the Fiat 500e was announced and lasted four weeks. The break was subsequently extended, first until the end of October and then into November.

Although production resumed briefly, the assembly lines were halted again on December 2. The latest plan was for work to resume on January 6. But that has now been postponed until at least January 20.

The continued production stoppage affects not only Fiat, but also Maserati, which manufactures cars at the same factory.

Maserati has had difficulty gaining a foothold in some markets such as the US and China, which has resulted in lower demand. The factory is therefore idle for both brands during the period.

Fiat in particular has experienced challenges in Europe, where their market share has declined significantly over recent years.

The electric car Fiat 500e, which was supposed to boost sales, has not lived up to expectations. Development of a new hybrid version of the Fiat 500 is underway, but it is not expected to be ready until around 2025 or later.

Maserati faces similar problems. Despite several attempts to relaunch the brand with new models, sales have not been sufficient to cover the high development costs associated with producing cars in the premium segment.

The factory's challenges reflect a broader trend in the automotive industry, where competition to deliver advanced technologies at lower prices is particularly pressing on smaller players.

Stellantis has previously attempted to reduce costs by sharing technology and components across its many car brands.

This strategy has proven effective in price-sensitive segments. But it can also hit more expensive brands like Maserati in the neck, as customers here do not appreciate being able to find the same switches and other parts in a Fiat 500.

The future of the Mirafiori factory and the brands produced here remains uncertain for the same reason.

With increasing competition and pressure on both electric cars and luxury cars, Stellantis looks set to face major challenges in the coming years. Even though the CEO has just been fired. Read more about it here .

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