The multinational car company Stellantis will temporarily halt production at several factories across Europe, according to media reports. The move comes amid falling demand, heightened US tariffs, and intensifying competition from China, further straining the continent’s already fragile automotive industry.
Production pauses across Europe
Stellantis confirmed it will temporarily suspend operations at five plants in Europe. The first halt will affect the Eisenach factory in Germany, where the Opel Grandland SUV is produced. Production will pause for two days next week ahead of a national holiday.
In Poland, the Tychy plant is scheduled to close for eight days, while in Italy, Stellantis will suspend the production of Fiat Panda and Alfa Romeo Tonale models at its Naples-area facility. In France, the company’s site outside Paris will close during the second half of October.
Reasons behind the move
The company explained the shutdowns are intended to adapt the pace of production to a difficult European market, while managing stocks efficiently before the year-end.
Key pressures include:
- Weak EU demand: car registrations fell 0.7 percent in the first seven months of 2025.
- US tariffs: the US doubled its tariffs on steel and aluminum, affecting costs and exports.
- China’s rise: competitive pricing from Chinese EV and carmakers intensifies pressure on European firms.
Wider industry challenges
Unions warn the temporary shutdowns could be a precursor to permanent closures if market conditions do not improve. Meanwhile, rivals face similar challenges: Volkswagen has lowered its 2025 forecasts and is preparing to cut 35,000 jobs in Germany as part of a major restructuring.