Stellantis (STLA) EV production falls short in Italy

Italy’s FIM CISL union revealed Friday that automaker, Stellantis (NYSE: STLA) has produced a lot fewer fully-electric 500e units in the country than initially planned, as buyers are holding off until the government can roll-out EV purchasing incentives.

According FIM CISL leader Ferdinando Uliano, the Fiat and Chrysler-parent produced 751,384 vehicles in Italy last year, marking a 9.6% increase from 2022. The upsurge was primarily due to heightened production in commercial vehicles, compensating for a significant 49% decline in Maserati sports car production.

Moreover, the year-end saw a 20-day pause in production at the Turin plant responsible for manufacturing the 500e, resulting in only 77,000 units produced, falling short of the initial forecast of over 90,000 cars for 2023.

Uliano mentioned the government had announced EV incentives multiple times last year but hasn't yet put them into effect, prompting buyers to hold off. The union also added that a lack of charging infrastructure is also curbing the EV market.

Uliano expects that when the buying incentives are finally in place, they will boost sales this year. Also, launching the 500e in the United States should help increase its production.

Shares of STLA are up 1.94% in mid-day trading on Friday.

By Michael Elkins | [email protected]

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