Fiat employees estimate that the car company owner, Stellantis, will seek a «Chinese solution» for the Cassino plant
In the face of a historical dilemma lies the European car industry. The factories which for decades have been the backbone of the continent's industrial power face their biggest crisis, as the fall of demand, the high cost production and Chinese boarding electric vehicles are suffocating large manufacturers.
At the heart of the crisis is its historic factory Fiat in Cassino of Italy, which by symbol of industrial development has been converted into Ghost factory, with production having collapsed and workers facing an uncertain future.
The Stellantis, owner of Fiat, is now seeking solutions that until a few years ago would have been considered inconceivable: partnerships with Chinese car companies in order to keep European production units open. But this choice creates a new, difficult dilemma for Europe, which is called upon to decide whether to use the Chinese technology to survive or risk the closure of factories and the loss of thousands of jobs.
Free fall Fiat
Just 130 km southeast of Rome, the Fiat plant in Cassino has the image of a site that is almost abandoned.
The parking spaces are empty, the Gates locked and many security posts abandoned, 2,200 workers are invited to work just a few days a month. Just 6,700 cars were built in the first half of 2026, a minimum of the annual production capacity of 300,000 vehicles.
Denise Tisci, 40, mother of three children, has not worked on shift since May and, like other factory workers, depends on one State temporary work suspension programme. «We've narrowed down a lot of things, even something as basic and simple as taking the kids out for a pizza.», said Tisci, working at the factory since 2007. «It is. humiliating when we have to face our children».
Search «Chinese solution»
Fiat employees estimate that the car company owner, Stellantis, will seek a «Chinese solution» for the Cassino plant, following its recent agreements in Spain and France with Leapmotor and Dongfeng. This is not an isolated case, as More and more European cars turn to Chinese Competition to address problems that partly arise from their rapid expansion into the European market.
«This is not just a way to survive and catch up with our new competitors. It is also an opportunity to increase production volume and growth in Europe», told the Financial Times Emanuele Cappellano, head of Stellantis' European activities, referring to recent cooperation with Chinese companies.
For the group's factories in Italy, the possibility of full closure has been excluded and Cappellano reported that by the end of the year a solution will have been found for Cassino. Given that the company is also looking for a partner to revive the problem brand Maserati, the most likely scenario is a agreement with a Chinese group with which is already cooperating, either the Leapmotor electric vehicle company or the Dongfeng state.
«Any partner carrying production to these factories is welcome», said Cassino mayor, Enzo Salera. «The car crisis affects the entire economy», he added, pointing out that local retail businesses and restaurants have been significantly affected.
European car industry corresponds About 7% of GDP of the continent and supports almost 14 million jobs. With car sales in the area remaining about 3 million vehicles below the levels before the pandemic and Chinese manufacturers constantly gaining ground, and other companies are now adopting the new «survival model».
The Nissan The Commission has decided to initiate proceedings under Article 93(2) of the EC Treaty. Volkswagen is in talks with Xpeng, while Ford He made a deal with Geely in Spain.
«Environment in Europe has changed forever», said Ford's head in Europe last week, Jim Baumbick, presenting the partnership with Geely. «The aim is to reach the lowest possible cost».
Overall, with the use of factories in the European car industry under 60%, production capacity of around 2.5 million vehicles is potentially available, according to AlixPartners.
The Stellantis strengthens a strategy that several industry executives regard as a short-term solution, but in the long term a road to self-destruct, unless local supply chains and know-how are strengthened.
At its factories in Spain and France, Stellantis has already invited Leapmotor and Dongfeng to produce their models.
The deal with Dongfeng has been largely accepted by workers in France, as it can help save a 1960s factory in Ren, Brittany. Like many other Stellantis factories in the country, the unit has been limited to a production line, while the surrounding land has been sold.
«Chinese cars are already in our ports», said Laurent Oechsel, a representative of the French CFE-CGE union in Stellantis. «Do we want to continue fighting them, as the textile industry once did, or do we want to continue producing cars in France, along with the Chinese?».
EU reaction
As part of the so-called Industrial Accelerator Act, the EU proposes local content limit 70% for car components, so that they can join subsidies or public contracts, while local battery production is expected to follow at a subsequent stage.
One of the big questions are to what extent Chinese groups will carry know-how and intellectual property, and how quickly they will start using European components.
In Spain, where the government has successfully attracted Chinese groups such as the battery manufacturer CATL, Cherry and SAIC, owner of MG, no guarantees have yet been given for the transfer of technology and the level of use of local labour and parts.
There is great concern in the automotive supplier chain, where component companies employ twice as many workers as car manufacturers themselves.
«We supply chain workers could be in danger.», stated Marco Leone, 62, whose company manufactures metal wings for Cassino's factory.
There are similar concerns about the agreement. Nissan share production at her factory in Sunderland with Cherry from the following year.
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