Short-sighted policy gave China the upper hand
The Mirafiori car plant is the last surviving automobile factory in Turin, the historical engine of the Italian car industry. At Mirafiori’s post-war peak, Fiat manufactured one million vehicles a year, employing 60 000 people. For much of this past year, so few cars have been produced for Stellantis at the plant that one worker recently remarked that “Mirafiori has already been closed. It’s just that it reopens sometimes”.
It has been a terrible few months for most of the world’s once-leading automobile companies. In September, Volkswagen gave notice of plans to shut at least three of its 10 German factories and cut wages by 10%, breaching a 1994 agreement to protect jobs in its home country until at least 2029, prompting rolling two- and four-hour strikes. As production ground to a halt again at Mirafiori in November, Stellantis made public that the Vauxhall plant at Luton would close in April 2025, cancelling the company’s prior plan to produce Vivaro electric vans there. In the same month, Ford indicated it would cut 3,800 jobs in Europe by 2027, while Nissan announced 9,000 job losses and a 20% cut in worldwide production. A senior official at Nissan is reported to have said that the Japanese company has “12 or 14 months to survive”.
