The automotive industry is in a terrible place at the moment, with a few bright spots. In fact, it hasn't looked worse in 70 years, writes a union in a new report.
Production at Alfa Romeo and Maserati is falling sharply. The automotive industry throughout Italy is hit by demand that has not been seen in 70 years.
Italian car production is experiencing a historic plunge. The figures show a significant decline for brands such as Alfa Romeo and Maserati. The outlook is worsening due to several factors, and hopes are now being pinned on the upcoming Fiat 500 Hybrid.
Car production in Italy has fallen to its lowest level since 1956 , according to new figures from the FIM-CISL trade union. The decline is so significant that it is affecting the entire industry, unionists say.
In the first quarter of this year, production of passenger cars and vans fell by 36 percent. This is compared to the same period last year. This follows a year in which total car production fell by 37 percent.
Several well-known brands are clearly feeling the crisis. Production at Maserati has fallen by a whopping 72 percent. Alfa Romeo is experiencing a decline of 52 percent.
The production of the Dodge Hornet, which is identical to the Alfa Romeo Tonale, has also been severely curtailed.
The model is primarily shipped to the US. New US tariffs are expected to hit exports hard. As a result, production has also been reduced by as much as 80 percent.
Reasons for the historic decline in the automotive industry
The FIM-CISL union points to a combination of reasons for the massive declines. The union calls the situation a "perfect storm." It covers several challenges for the industry.
Weak demand for cars is one of the main reasons. Customers are holding back on buying new cars. This is putting pressure on several car brands. Also harder than expected.
At the same time, there is a major shift towards electric cars. This requires major investments and adjustments at the factories. The adaptation takes time and costs money, but interest in electric cars has not been able to keep up with the factories' investments.
Factories also have to be adjusted to build completely new car models, a process that also negatively affects overall production capacity.
The new punitive tariffs from the US are further worsening the situation, especially for models like the Dodge Hornet, which are exported to the American market.
Future prospects and new models like the Fiat 500
The union expresses concern about the negative figures. "We did not expect any improvement, but neither did we expect such negative figures," the FIM-CISL report states.
Uncertainty is affecting the Italian automotive industry. Solutions are needed to reverse the trend.
The Stellantis Group, which owns the brands, is now putting its trust in a new model. The new hybrid version of the Fiat 500 is due to be produced later this year.
The expectation is that the new Fiat 500 can provide a much-needed boost. It should help increase production figures again.
However, it is uncertain whether one model alone can reverse the negative trend. The entire industry faces major challenges in the coming years. The future of Italian car production depends on many factors.
At Boosted.dk you can read a lot more about the Italian car brands. We constantly follow the news from Alfa Romeo, Maserati and Fiat.
And of course we also make sure to bring you the latest news from Maranello, where Ferrari is pouring money into new cars like never before. Read more about it here .
