Italy's Industry Minister Averts Layoffs at Stellantis Suppliers

ROME (Reuters) – Italy's Industry Minister Adolfo Urso announced a deal on Tuesday to avert 249 layoffs at suppliers to Stellantis (NYSE:STLA), hoping to mend strained relations with the carmaker.

Stellantis and Italy's government have been at odds for months, with politicians accusing Fiat (BIT:STLAM)'s parent company and CEO Carlos Tavares of neglecting historic Italian manufacturing sites and shifting production abroad.

A Stellantis manager stated on Monday, following Tavares' sudden departure, that he would present a plan to improve output in Italy at a meeting Urso is hosting on Dec. 17 in Rome.

On Tuesday, Urso mentioned a deal where Stellantis extended a contract with its logistics supplier Trasnova for another year, preventing 97 layoffs at the end of the month. Additionally, 152 jobs at subcontractors Logitech (NASDAQ:LOGI) and Tecnoservice were saved due to the contract extension.

Urso described the deal as a "concrete sign of responsibility" at a critical time for the automotive sector and expressed hope for a new, productive path with Stellantis.

Stellantis stated it acted responsibly and would continue efforts to safeguard jobs amidst the electric transition challenges. Unions urged that the 12-month reprieve should be used to find long-term solutions for Italy's auto sector, especially at Urso's upcoming meeting next week.