Italy eyes higher relations with Stellantis after automaker saves provider jobs

ROME (Reuters) – Italy’s Trade Minister Adolfo Urso introduced a deal on Tuesday to avert 249 layoffs at suppliers to Stellantis (NYSE:STLA), saying he hoped the breakthrough would assist restore strained relations with the carmaker.

Stellantis and Italy’s authorities have been at loggerheads for months, with politicians in Rome accusing Fiat (BIT:STLAM)’s dad or mum firm and its CEO Carlos Tavares of neglecting historic Italian manufacturing websites and shifting manufacturing overseas.

However a prime Stellantis supervisor stated on Monday, days after the sudden departure of Tavares, that he would current a transparent plan to revive output in Italy at a gathering on the Italian automotive trade Urso is about to host on Dec. 17 in Rome.

On Tuesday, the minister stated he brokered a deal whereby Stellantis agreed to increase a contract for one more 12 months with its logistics provider Trasnova, which might in any other case have fired 97 folks on the finish of the month.

An additional 152 jobs at two of Trasnova’s subcontractors – Logitech (NASDAQ:LOGI) and Tecnoservice – which had been additionally set to be misplaced on the finish of the 12 months, have been saved due to the contract extension.

The deal “represents a concrete signal of accountability at an important time for the automotive sector,” Urso stated. “I hope it’s going to additionally mark the beginning of a brand new and productive path with Stellantis”, he added.

In a separate assertion, the Franco-Italian carmaker stated it had acted responsibly and would proceed its efforts to safeguard jobs at its Italian operations whereas coping with the problem of the electrical transition.

Unions stated the 12-month reprieve for the employees going through layoffs needs to be used to seek out longer-term options for the Italian auto sector, together with on the assembly because of happen at Urso’s ministry subsequent week.