TURIN – Stellantis CEO Carlos Tavares has told Italian unions that he will work with them to improve competitiveness and cut production costs at factories in Italy, where they currently are up to four times more than in France or Spain for a similar model.
Tavares, who met with union representatives at two former Fiat Chrysler factories in the Turin area this week, said the problem was primarily not labor costs but production costs on models that did not sell in anticipated numbers.
Unions have been worried that the merger of PSA Group and FCA to form Stellantis, which was finalized last month, could result in job losses, especially in Italy. Tavares has pledged not to close any assembly plants in Europe as a result of the merger.
A union source who attended the meeting told Automotive News Europe that Tavares gave workers several examples of the cost discrepancy between the Turin-area plants and those at PSA plants in Europe.
Tavares said the Ma…