At YourDailyAnalysis, we note a troubling sign for Italy’s industrial landscape: automotive giant Stellantis, the parent company of Fiat, Alfa Romeo, and Maserati, is facing a deep production slump amid structural challenges across the European car market. According to the FIM Cisl union, Stellantis’ Italian output fell by 32% in the first nine months of 2025, with full-year results expected to mirror this decline. The contraction highlights the severity of the crisis in a sector that once symbolized Italy’s manufacturing strength.
We at YourDailyAnalysis emphasize that between January and September, Stellantis produced only around 265,000 vehicles in Italy – including both passenger cars and light commercial vehicles. By year-end, total production is expected to remain below 310,000 units, effectively repeating last year’s record low. Passenger car output is projected to fall below 200,000 units, compared with 283,000 in 2024 – the lowest figure in nearly seven decades.
The reasons are clear but intertwined. The European car market remains sluggish, demand for electric vehicles is growing slower than anticipated, and Stellantis has struggled to bring new models to market on schedule. According to FIM Cisl leader Ferdinando Uliano, results have been “far worse than expected” due to internal inefficiencies and long-standing structural issues.
At YourDailyAnalysis, we view the Stellantis crisis as a reflection of broader economic fragility. Italy – where the automotive industry has long been a cornerstone of industrial output – is experiencing a structural decline in competitiveness. High energy costs, rising pressure from Chinese automakers, and a delayed model lineup overhaul are eroding the sector’s resilience.
In December, Stellantis unveiled a plan to revive production in Italy, but meaningful results are unlikely before 2026, when new models such as the hybrid Fiat 500, DS8, and Jeep Compass are set to launch. Nearly half of the company’s Italian workforce remains on partial furlough, adding to social and economic strain across the country.
As production continues to fall, unions are demanding concrete action from newly appointed CEO Antonio Filosa. A critical meeting set for October 20 in Turin, Fiat’s hometown, is expected to clarify Stellantis’ roadmap for sustaining operations and jobs. Filosa, who took over in June, is working on a revised long-term business strategy to be presented in the first quarter of 2026.
We at YourDailyAnalysis believe the Stellantis downturn represents more than a corporate challenge – it is a barometer of Italy’s industrial health. Without faster model rollouts, renewed innovation, and stronger focus on hybrid and electric technologies, Italy risks losing its position as a major European manufacturing hub.
Our forecast: 2025 will be a year of survival for Stellantis. The company’s future will depend on its ability to adapt quickly – where innovation, efficiency, and cost discipline matter more than legacy or scale. Otherwise, even a storied brand like Fiat may find itself a captive of its own history.
