Stellantis has announced it will slow down operations at its Italian plant after waning demand for electric vehicles as other manufacturers assess their options.
The major car manufacturing company announced it would ease development at the Mirafiori plant in Turin, Italy, as interest in electric cars slows.
A spokesperson for Stellantis confirmed there had been a weak response to its fully electric Fiat 500 small car and Maserati models.
They added that the stoppages will last until March 30, after the brand said a furlough period would be in effect for 2,250 workers between February 12 and March 3.
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Changes would be in place at the Turin factory until the end of March
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During this period, the Mirafiori plant will operate on a reduced rate of one eight-hour daily shift instead of two, except February 12, when manufacturing will be stopped.
According to Reuters, Fiat has the option to completely stop activity at the facility if demand reduces even further in the coming weeks.
This follows new directives from the Italian Government to introduce huge new incentives to help drivers make the switch to electric.
As part of new plans worth €950million (£813million) this year, drivers looking to buy a new EV will be subsidised up to €13,750 (£11,770).
One of the world’s biggest and most popular manufacturers, Ford, also announced that it would cut production of electric cars as demand lags behind expectations.
In January, Ford said it would reduce production of its F-150 Lightning pickup truck at its Michigan Rouge Electric Vehicle Centre.
It said it would also cut shifts to just one per day from April 1, after announcing in October that shifts would be temporarily slashed from three to one.
Jim Farley, CEO of Ford, said: “We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability.”
Ford announced that it would slow production of the F-150 Lightning EV
REUTERS
Ford sold 24,165 F-150 Lightning trucks last year in the United States, an impressive sales increase of 55 per cent.
Last August, the brand stated that it would be able to produce 150,000 vehicles every year at its Michigan production plant.
Volvo also hinted at poor sales of electric vehicles for its decision to cut funding from luxury EV manufacturer Polestar.
The Swedish manufacturer said Polestar would be handed over to one of its largest shareholders – China’s Geely Holding.
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Deliveries of the Polestar 4 are set to begin later this year
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Polestar’s sales have dropped in recent months as evidenced by the share price falling a staggering 83 per cent since going public in June 2022.
Despite the brand having its full operational and financial support system altered, the Gothenberg-based manufacturer is pushing ahead with its new Polestar 4 model.
The new electric vehicle will come equipped with an impressive 379-mile range. However, the largest change sees the rear window replaced with a camera, making the design of the car one of the most unique in recent years.