Stellantis to suspend production at two European plants due to weak demand • FRANCE 24 English

And it’s time now for business. We say hello to Yuka Hu. We begin with Stellantis, the car maker uh which has had a bit of a rocky road in 2025 and it ain’t over yet. No, not at all so the group behind Pujo Citro and uh Fiat Chrysler and other car brands says it’s suspending production at two of its plants, one in Pi, France and another in Pomeiano, Italy because of weak market demand in Europe. Now the temporary closure will begin at the end of September and last up to three weeks and thousands of workers during this time will be furowed. The move comes as European car makers have been dealing with Donald Trump’s higher tariffs as well as rising competition from China. Luke Shger has more. A 15-day hiatus for the largest car plant in the Paris region from October 13th to the 31st due to what Stalantis called a difficult market in Europe. The Pasi plant, which produces 420 vehicles a day, including the Opel Mocker and the Citroen DS3, will see its 2,000 staff either placed on leave or short time working. And that’s not all. Stalantis is also halting production at its Italian Pomeo factory from September 29th to October 6th and furowing its 3,800 workers. Stalantis and its 14 vehicle brands have struggled in 2025. Not only is it facing less demand in Europe, new vehicle registrations there were flat in the period January to July with those for Stellantis brands falling 8%. It’s also been buffeted by US tariffs impacting a significant market for the company and is facing serious competition from Chinese newcomers and a slew of cheaper electric vehicles. They’ve attracted costconcious European consumers as firms like BYD expand into the European market. something that pushed Brussels to step in last year, imposing tariffs on what it called unfairly subsidized Chinese EVs in an effort to protect its own automakers. And uh in the UK, uh production suspended at another car plant for a different reasons. Gremlins in the system at um Jaguar Land Rover. Jaguar Land Rover indeed. That’s the company that’s owned by India’s Tata Group, Tata Motors, and it has been unable to make cars since the attack, a cyber attack in late August, forc it to shut down its IT networks. In a statement on Tuesday, the car makers said the current production pools would be extended until the 1st of October as it builds the timeline for a phased restart of operations. The UK government says its cyber security team is working with the firm as it’s not an isolated case. Jaguar Land Rover is among a string of businesses hit by cyber attacks in recent weeks. Last week, airports in London, Brussels, and Berlin were disrupted as ransomware paralyzed their automated check-in systems. This is the modern-day bank heist. So, instead of knocking off a bank, they’re now knocking over a company. And what they’ll do is they’ll attack an organization. Um they will attempt to exfiltrate some data, steal some data off them. Then they’ll place um some kind of ransom uh wear technology on the network, render the system useless, and then force the um organization in question to the table. The Paris-based Organization for the Economic Cooperation and Development saying that the World Economy will slow because of Donald Trump’s tariffs. Eventually, the OECD has published an interim report on its economic output with estimates updated from its June report. It expects global growth to slow to just 3.2% this year from 3.3% last year, but that’s compared to the 2.9% previously estimated. This is thanks in part to AI investment propping up economic activity in the US and fiscal support alleviating impacts of a slowdown in China as well as measures taken by businesses before Donald Trump’s tariffs kicked kicked in like accelerating shipments and stockpiling goods. But the group warns that the full impact of US tariff hikes was still unfolding with prices increasing by nearly 20% by the end of August. his OECD Secretary General Matias Corman speaking earlier. As of the end of August, the average tariff ride on merchandise imports to the United States is estimated at 19.5% which is higher than at any time between the mid 1930s and 2024. The full effects of these tariffs will become clearer as firms run down the inventories that build up in response to tariff announcements and as the higher tariff rights continue to be implemented. In the Euro zone, trade and geopolitical tensions are offsetting the boost from lower interest rates. The block’s economic growth forecast has been revised upwards to 1.2% this year, but downwards to 1% for next year. Germany, which has removed its debt break and increased public spending is propping up Eurozone growth. While political uncertainty and financial instability in France is putting a drag, other economic data out today also showed that while economic activity edged up in August in the Euro zone, the underlying trend has suggested that the block’s industrial rebound might be freezing fizzling out and services were supporting growth. Now.

Stellantis, the owner of Peugeot, Citroen, Fiat, Chrysler and other brands, has announced plans to pause production at two of its European plants – in Poissy, France and Pomigliano, Italy – citing weak market demand in Europe. Thousands of workers will be furloughed. Plus, the OECD says global economic growth is holding up better than expected for now, but warns that the full impact of higher US tariffs is still unfolding. 
#Stellantis #EUcarmakers #Furloughs

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35 comments
  1. What do you expect if you let Chinese competitors make the cars people want for a price they can afford and have been stalling on innovation too long yourself?

  2. Let’s celebrate this revelation as a huge step forward to a Greener France. While US President imposes tariffs to encourage domestic industry in America, Stellantis puts investors profits first. Paris just looks on without a clue.

  3. In other words,, we don't have Russia cheap
    gas anymore to run our factories, so that we
    can be economically competitive with
    China and the US 😊😊😊

  4. I'm confident the demand for personal transportation hasn't declined. Maybe the demand for Stellantis vehicles is down because the executives/decision makers simply made bad decisions. Maybe they should be replaced with competent managers.

  5. Chrysler was a failure and was purchased by Fiat which is another failure and now owned by Stellantis………..anyone surprised that this too is a failure?

  6. Unfortunately Stellantis appears to be in a death spiral. The DS brand has virtually disappeared from the UK sales charts, Citroen is suffering from serious recalls, apart from the 500 no one buys Fists etc. It could be a great business but it’s too unwieldy and needs focus and drop the competing cars in its portfolio.

  7. The other day, I went to check the price of an Opel Astra and walked out as soon as I saw they were asking 40,000 Euros for a mediocre car with poor resale value that used to be a people's car. Honestly, this should cost no more than 20,000 at best. It's a disgraceful mark on European history, shaped by globalists who decided to provoke Russia and its territory, jeopardizing Europe's future. It's shameful to see people passively witnessing this destruction of the European economy.

  8. The deluded Wokeists (led by German politicians) have decimated
    the European Car Industry.
    Tens of thousands of good-paying jobs will be lost.

    With HIGH energy costs, Europe is in a downward spiral, economically.

Comments are closed.