Stellantis To Droop Manufacturing Of Fiat 500 EV At Turin Plant Once more: What’s Going On? – Stellantis (NYSE:STLA)

Stellantis N.V. STLA is able to droop auto manufacturing at its Italian Mirafiori plant in Turin.

What Occurred: The automaker introduced confirmed Wednesday, Nov. 27, that manufacturing will halt from Dec. 2 to Jan. 5 as a consequence of persisting weak point in gross sales for the electrical Fiat 500 metropolis automobile.

The suspension is because of the weak point in demand within the European markets, which account for 97% of Mirafiori’s manufacturing, and luxurious automobiles in international locations like China and the U.S.

In response to Reuters, the automaker had knowledgeable the commerce unions about suspending meeting operations starting Dec. 2 and 17, after the prior closure of the plant for end-year holidays from Dec. 18 to Jan. 5.

Additionally Learn: Taiwan Semiconductor’s Superior 2nm Chips To Hit US Market By 2028

In October, Stellantis shared plans to prolong the suspension of its Fiat 500 electrical metropolis automobile manufacturing in Turin till Nov. 1, after halting the manufacturing till Oct. 11 as a consequence of weak demand.

Why It Issues: Stellantis inventory plunged 45% year-to-date because it struggled to transition from conventional combustion engines to electrical autos (EVs). The corporate postponed investments and different plans associated to EV manufacturing.

Additionally, on the finish of October, Stellantis recalled 33,777 Ram 1500 autos within the U.S. as a consequence of security considerations, marking its third recall.

Stellantis inventory additionally bought a success this week from President-elect Donald Trump suggesting 25% tariffs on imports from Canada and Mexico, the place the automaker has 4 vital factories.

Traders can achieve publicity to Stellantis by way of SPDR S&P Kensho New Economies Composite ETF KOMP and First Belief Change-Traded Fund VI First Belief New Constructs Core Earnings Leaders ETF FTCE.

Worth Motion: Stellantis inventory is up 2.11% at $13.06 premarket eventually examine Friday.

Now Learn:

Picture: Shutterstock