Stellantis turns the spotlight on supply costs
“Dear supplier, the automotive industry is going through a major transformation. To support the needs of the business we must take a step forward and improve cost performance. Therefore we ask you to efficiently manage the cost policy”. It is the beginning of a letter, reported by the Turin edition of Corriere della Sera, which Stellantis addressed its suppliers. Asking for a 6% reduction in the costs of auto component supplies. This announcement came unexpectedly, causing concern among suppliers, especially in light of recent corporate decisions involving the production of key models such as the New Panda and New Quattroporte Maserati.
The request to lower component prices is not new, as a similar request had already been made twelve months ago, with a request for a 5-6% discount. The news comes at a time when the production of the New Panda has been made official in Serbia rather than in the Italian factories of Mirafiori or Pomigliano, sparking negative reactions from institutions and trade unions. At the same time, production of the New Quattroporte Maserati in Turin was suspended, generating further concerns in the related industries.
Stellantis, however, tried to reassure suppliers regarding the possible allocation of Maserati models abroad. In a note, the company declared that all new models will be developed, engineered and produced 100% in Italy, adopting electric motors. The company's strategy is clear: reduce costs to remain competitive in the electric car market by moving production and requesting discounts from suppliers.
Meanwhile, in Mirafiori, Stellantis' key production site, the new director Vito Cascione has taken over from Giuseppe Figliuolo. The factory, which produces around 90,000 cars, mainly the 500 Bev, is facing challenges, with the electric 500 recording a performance below market expectations.
There suspension of the Maserati Berlina project in Mirafiori has further alarmed workers and related industries. Although Stellantis has started new projects, such as the Green Campus, the Battery Plant and the Circular Economy Hub in Mirafiori, the absence of new models to produce raises concerns about the future of the plant. The recent offer of redundancy incentives, with over 100,000 euros and assistance for the transition to new jobs, saw almost a thousand white-collar workers join the program.
Stellantis' decision to suspend the M9S (New Electric Quattroporte) project at Mirafiori has hit the related industries, which are now faced with a reduction in order volumes and the request for further discounts on the prices of car components. The situation also appears complicated on the registration front, with Stellantis recording a 2.6% decrease in sales in November.
Finally, the new version of the 500e, originally planned for 2027, could be postponed to 2030, raising concerns inside and outside the company in an automotive market that sees the growth of low-cost small cars, especially of Chinese production. Employment security in Turin has become an urgent request from the trade unionswho will ask the company for clarification on future plans for Mirafiori.
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