More of a drift than a (just) transition: electrification as the next stage of restructuring in Italian Stellantis factories.

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Abstract:

Context & purpose of the paper
The early 2021 merger between PSA and FCA that created Stellantis has become a critical juncture for Italy’s automotive sector and its electrification trajectory. As the only major final assembly carmaker present in the country, Stellantis’ strategic choices have far-reaching implications, influencing not only the pace and scope of the green transition but also shape the future of mobility production, impact hundreds of thousands of auto jobs and significantly impact the more general transformation towards sustainable transportation. Coupled with the government’s approach to industrial policy – or indeed the lack thereof – the path which Stellantis decides to pursue is of particular significance and should thus be closely monitored. This context presents unprecedented challenges for labor unions, who face both technological transformation and industrial restructuring while attempting to represent an increasingly individualised and fragmented workforce.

In light of the above premises, this article sets out to examine how electrification trajectories unfold within the Italian automotive industry through a case study of Stellantis. It addresses two key research questions: (1) How do factors at the workplace, firm’s strategy, industrial relations and national context levels shape the group’s electrification trajectory in Italy? (2) What are the impacts of this trajectory on workforce and labour unions? By adopting a multi-level analysis, the study shows how the multinational global strategies while illustrating how electrification becomes integrated into existing patterns of industrial restructuring, reinforcing some aspects and adding new pieces to the puzzle of the permanent restructuring strategy.

Methodology
The research employs a qualitative case study approach, relying on the analysis of three Italian Stellantis facilities: Termoli (originally designated for conversion to a gigafactory), Atessa (Europe's leading Light Commercial Vehicles plant), and Cassino (which manufactures premium vehicles). Data collection primarily relies on semi-structured interviews with key informants, trade unionists, shop stewards, and workers. This is complemented by analysis of company documents, union agreements, and policy frameworks, allowing for a comprehensive understanding of how electrification processes unfold across different organizational levels.

(Tentative) Findings
The study maps out the range of factors that shape Stellantis’ electrification trajectory in Italy. First, at the workplace level, structural constraints emerge from socio-technical configurations of factories, with older facilities like Atessa’s assembly lines proving unsuitable for EV production, as the lines are not equipped to sustain the weight of electric batteries for LCV – while newer plants in Poland (Gliwice) and even France (Hordain) are better positioned for the transition. Second, Stellantis’ multinational strategy shows a pattern of divestment from Italy in favor of relocation to lower-cost countries in North Africa and Eastern Europe, with a parallel strategy of production diversification between electric and hybrid models due to limited BEV demand. Third, at the national level, Italy’s weak industrial policy, inadequate social shock absorber schemes, and government's stance on postponing 2035 EU targets create an enabling environment for what we term a 'drift' rather than a transition. Finally, the group’s industrial relations approach is in continuity with FCA’s, relying on the marginalisation of the unions and the lack of involvement of workers in the implementation of new technologies and work organisation changes. Since the merger, however, the distance perceived between the unions and management has further widened, including due to the clash of different managerial cultures in Italy and in France, where many of the figures holding managerial positions come from. This has led to a further deterioration of relations between management and labour organisations.

Ultimately, if prior to the merger with PSA Fiat and then FCA in Italy had invested little in electric vehicles (Gaddi and Garbellini, 2021) the creation of Stellantis failed to substantially modify this pattern. A process of ‘permanent restructuring’ (Li Vigni, forthcoming) was pursued that hinged on three interconnected factors: reshaping industrial relations, transforming work organisation and a managerial strategy marked by the systematic weakening and division of the labour force and of the unions. Arguably, electrification has become yet another step in such a process of permanent restructuring that is based on maximum efficiency and work intensification.

Implications
The study contributes to existing literature by demonstrating how electrification becomes integrated into existing patterns of ‘permanent restructuring’ (Siemiatycki, 2012) rather than representing a clear break with past practices. It advances the understanding of how, within the current context, multinational companies’ strategies are still mediated by national institutional contexts and workplace-level constraints. Additionally, the close investigation of the social consequences of the transition on workers further substantiate the claim that the absence of comprehensive industrial policies and social protection schemes fosters corporate strategies that prioritise cost reduction and profit making over the just transition.

References
Gaddi, M., & Garbellini, N. (2021). Automotive global value chains in Europe. Institute for New
Economic Thinking Working Paper Series, (160).

Li Vigni, C. (forthcoming). The Permanent Restructuring of Italy's FCA-Stellantis Factories: An Anatomy of Labour and Unions Downfall. Sociologia del Lavoro.

Siemiatycki, E. (2012). ‘Forced to Concede: Permanent Restructuring and Labour's Place in the
North American Auto Industry’. Antipode, 44(2), pp. 453-473.