Stellantis NV (NYSE: STLA) and Italy's Industry Minister wanted to elevate vehicle production to over one million units.
Italy is the home to Stellantis brands, including Fiat and Alfa Romeo. The Italian minister, Adolfo Urso said the country is planning to sign a deal with Stellantis on car production by the end of July, Reuters reported.
Stellantis produced less than 700,000 vehicles in the country last year and in 2021 due to supply chain glitches and shortage of microchips.
Stellantis' production in 2023 is expected to rise to about 800,000 units, according to the FIM-CISL metalworkers union.
"The parties have agreed on the need to immediately intervene to reverse the negative trend of the latest 20 years," said Urso.
However, in response to the government's call last week to boost locally manufactured vehicles like small EV cars, Stellantis CEO Carlos Tavares said that "high cost" nations, like France and Italy, can only afford to manufacture high-value cars.
Out of the approximately 270,000 individuals working in the Italian automotive sector, Stellantis accounts for about 45,000 of these employees.
Price Action: STLA shares are trading higher by 0.62% at $17.85 on the last check Monday.