Automotive Cells Company Halts Gigafactory Plans in Italy and Germany

The Stellantis-supported Automotive Cells Company (ACC) has officially halted its plans to construct gigafactories in Italy and Germany, as declared by the Italian metalworkers' union UILM. Initially planned to include facilities across France, Germany, and Italy, ACC's European expansion hits a roadblock.

According to UILM, ACC management conveyed the indefinite shelving of projects in Termoli and Kaiserslautern due to prerequisites for continuation not being met. Dialogue with German works council representatives and Italian unions is underway to address the project's discontinuation. Meanwhile, the electric vehicle sector's uncertainty saw Stellantis shares nosedive by 25.2% following the announcement.

ACC, in partnership with Mercedes-Benz and TotalEnergies, has started producing batteries in France but halted further expansions amid tepid electric vehicle demand. Previous commitments to gearbox and engine production at Termoli remain vague, compounding the uncertainty. The union asserts the necessity for decisive industrial strategies to compensate for the gigafactory setback.