Stellantis NV (NYSE:STLA), the parent company of Fiat, Peugeot, and Chrysler, encountered production difficulties with its fully-electric 500e cars in Italy last year, said the FIM CISL union.
In 2023, Stellantis manufactured around 77,000 units of the 500e model, falling short of the over 90,000 units initially anticipated.
The delay in the rollout of government EV purchasing incentives led many potential buyers to postpone their purchases, FIM CISL leader Ferdinando Uliano indicated.
The issue, coupled with inadequate charging infrastructure in Italy, has been hindering the growth of the EV market in the country, reported Reuters.
Despite the setback in 500e production, Stellantis saw an overall increase in vehicle production in Italy, with a total of 751,384 vehicles produced last year, marking a 9.6% rise from 2022.
The report read that this increase was primarily driven by commercial vehicles, offsetting a decline in Maserati sports car production and the impact of a temporary production halt at the Turin plant.
Looking ahead, the launch of the 500e in the U.S. is expected to contribute positively to Stellantis’ volume.
The Italian government has announced plans to allocate €930 million to support lower-income households in purchasing cleaner cars, including EVs and hybrids, as per the report.
These incentives are anticipated to boost EV sales in Italy, where electric cars currently constitute only about 4% of total vehicle sales, lower than the European average of around 14%, per the Reuters report.
Price Action: STLA shares are trading higher by 0.92% at $22.42 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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