The announcement of the Stellantis group shakes the auto sector, the CEO Jean Philippeprendito announces the next steps of the company.
Car factory (Allaguida.it)
He was the CEO of Alfa Romeo, one of the brands incorporated into the Stellantis group, Jean Philippe Learnedto announce the next steps that the company intends to take. The announcement confirms what has been hypothesized for some time, and makes hundreds of thousands of employees tremble, because shakes up the automotive sector.
The automotive sector is in dramatic conditionscar sales have been steadily declining in recent years, and no one knows how to get out of this quagmire. Furthermore, there are EU taxes concerning the use of sustainable energy, and therefore the fight against fossil fuel. Stellantis announces the cut in production of vehicles with petrol and diesel engines.
Stellantis’ announcement: fight against combustion engines to favor electric
Cars inside a factory (Allaguida.it)
Rather than pay the fines regarding CO2 emissions, it causes the new limits imposed by the European Community, and which will come into effect in force starting next yearthe Stellantis group prefers cut car production with petrol and diesel engines. What has been learned has been very clear, and there is fear of the dismissal of thousands of workers throughout Europe and the United States.
The decision inevitably it will also hit Italian factorieswithin which, currently, no electric car model is produced. It had to start with the large production of the Fiat 500ethe first all-Italian electric car, and instead the commercial flop of the model forced the car manufacturer to review its future plans.
From next January, the maximum limit for CO2 emissions into the air has been further lowered in all European countries. Every car manufacturer is required to keep under control the number of vehicles placed on the market. This legislation serves to push the electric market, which does not seem to be gaining ground, so much so that it is worth only 6% of the global market.
Electric car market paralyzed, EU program to increase production and sales
To produce more electric vehicles, we must reduce the number of combustion engine cars. Now, however, the danger that all manufacturers run is that of not being able to guarantee the sales mix. If they continue to produce the same numbers of thermal specimens, they face fines. According to analysts at Barclays bank, the total fines It is worth a total of over 10 billion eurosand only for 2025.
An unsustainable situation for all the brands involved. The goal is to reach at least 24% electric cars produced, a very high figure, considering that sales are stuck at 6%. The risk is also that of producing too many electric vehicles that would remain unsold. This pushes the second-hand market even further, which has been thriving again for a few years.
In Italy, Stellantis has suspended the production of the Fiat 500e at the Mirafiori plant, and to this is added the production stoppage of the Pomigliano d’Arco plantwhere the Fiat Panda is produced. Where do unsold electric cars end up?
The Stellantis Shake-Up: Gas Guzzlers Out, Sparkies In!
In a twist that has left the automotive sector spinning faster than a kid on a merry-go-round, Stellantis group is making headlines! CEO Jean Philippe Learned (yes, that’s officially his name, and yes, he does sound a bit like he just graduated from the School of Fancy Titles) has announced some rather intriguing moves that could send shockwaves through the industry. Buckle up, folks, because this ride just got a lot bumpier!
Once the proud ruler of Alfa Romeo, Jean Philippe has now taken the helm at Stellantis, a conglomerate that’s asking, “Can we please create fewer emissions and more electric dreams?” It’s like watching a soap opera unfold—except this one has real stakes: the livelihoods of hundreds of thousands of employees are now hanging in the balance! Real cliffhanger stuff!
Goodbye Petrol, Hello Electric Shock
The automotive industry is in more trouble than a cat in a room full of rocking chairs. Sales have been tanking like your uncle after a family barbecue, and it seems like no one has the foggiest idea how to pull this juggernaut out of its nosedive. Enter the EU with its stern face and hefty fines for CO2 emissions. Rather than cough up cash for emissions fines, Stellantis has decided to cut back on vehicles with petrol and diesel engines faster than a contestant on a cooking show trying to avoid elimination!
Now, before you jump for joy at the prospect of fewer gas-guzzlers, there’s a catch! The plan means thousands of workers (yes, the very folks who build the cars that get our behinds from A to B) might find themselves with a bit more time on their hands. Lean, mean, electric machine, indeed!
The Electric Dilemma: Too Much Too Soon?
So, what’s the issue? Well, apparently, producing electric vehicles in Italy is about as popular as a root canal. Stellantis has hit the brakes on the Fiat 500e—which was supposed to lead the charge—because that went down about as well as a lead balloon. And with only 6% of the market devoted to electric vehicles, we have to ask: is everyone just pretending to like electric cars, or is it just a case of “not in my backyard”?
Now, here’s where it gets mischievous: Stellantis needs to produce a whopping 24% of its cars as electric by 2025. So, what do we do? Do we crank up production and risk flooding the market with electric cars nobody wants? Or do we keep rolling out the petrol monsters and embrace those fines like a long-lost relative? Barclays has made it clear—the fines could add up to over 10 billion euros. That’s a serious “oopsie daisy!” moment, right there!
Where Do the Unsold Sparks Go?
Production of the Fiat 500e is currently paused, and let’s not even get started on the Fiat Panda (which is feeling a bit left out of this whole ‘electric’ affair). So where do all these unsold electric cars end up? Maybe they’ll start a new trend—Electric Car Yoga classes? “Bend and stretch, and don’t forget to recharge!”
Despite all the hiccups, Stellantis’s ambition is noble: to force the market into embracing electric vehicles rather than running away like a thief in the night. But let’s face it—this automotive rollercoaster is only just beginning, and we’re all strapping in for one wild ride. Will gas engines soon be relics of the past? Stay tuned, because this is one soap opera I can’t wait to watch unfold!
