ROME (Reuters) – Stellantis (NYSE ) announced on Wednesday new temporary stoppages for two of its plants in southern Italy, as the automaker continues to suffer from weak demand for its products.
The company said in two separate statements that it informed unions about a pause in production at the Termoli engine plant from December 16 to 22 and at the Cassino car factory on November 29. During strikes, workers will be laid off.
Stellantis, whose Italian brands include Fiat (BIT:) and Alfa Romeo, said it was determined to “ensure the continuity” of its Italian operations, but noted that it faced “a challenging path that requires difficult decisions and offers no easy solutions.”
The company faces industry-wide challenges, such as low demand for more expensive electric cars and competition from China. It is also grappling with inflated inventories that have led it to cut its earnings and cash flow forecasts.
In Italy, it has repeatedly halted production this year, including at its historic Mirafiori plant in Turin, but last week Stellantis pledged not to close factories in the country or make mass layoffs.
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