Stellantis halts output at six European plants to manage inventory due to soft market conditions.
Alfa Romeo Tonale production affected by U.S. tariffs; Fiat Panda faces declining fleet demand.
CEO Filosa to focus on volume recovery through new models while facing rising competition and overcapacity.
Stellantis announced that production of the Fiat Panda and Alfa Romeo Tonale will pause at its Pomigliano plant in southern Italy from Sept. 29 to Oct. 6. Approximately 3,800 workers at the site will be placed on furlough during the shutdown.
In France, production at Stellantis’ Poissy plant, which assembles the DS3 and Opel Mokka small SUVs, will halt between Oct. 13 and 31. Additional stoppages are planned at factories in Tychy, Poland; Eisenach, Germany; and two unnamed sites in Spain, according to sources cited by Bloomberg.
The automaker said the production adjustments aim to “adapt the rhythm” of output to a weakening European market and to manage inventory levels efficiently before the end of the year.
Data from market researcher Dataforce showed new-car registrations in Europe rose by only 0.3% in the first eight months of 2025. Stellantis posted a 6.6% decline in sales over the same period.
The Alfa Romeo Tonale has been particularly affected by tariffs in the U.S. market, where the model was expected to gain traction. Stellantis said the pause in Panda production also reflects reduced demand from fleet and rental customers in the latter part of the year, along with efforts to optimize plant operations.
Stellantis, which owns brands including Jeep, Dodge, and Peugeot, is dealing with overcapacity in its European network while competitors from China, notably BYD, increase their market share with competitively priced models.
New CEO Antonio Filosa has said the company will focus on increasing volumes and revenue, with a strategy centred on launching models such as the Citroen C3, C3 Aircross, Opel Frontera, and Fiat Grande Panda. Other challenges include Maserati, Chrysler, as well as Fiat and their future either globally or more specifically, in North America.
