Stellantis expects Italian plants to operate at full capacity in 2030, as plans for new models, including hybrids, are expected to support production, said CEO Carlos Tavares.

In recent months, Stellantis and the Italian government have exchanged harsh words regarding the automaker's declining production in the country, with Rome criticizing it for moving the production of some models of Italy's historic Fiat and Alfa Romeo brands to countries where the cost is lower.

Tavares said today that the company has reassured the unions about production plans until the beginning of the next decade, and in some cases beyond. However, the manager criticized the high cost of energy in Italy.

"It is clear that there is no business problem in Italy," Tavares said after meeting with unions at the Stellantis plant in Melfi, Basilicata.

"In Italy, all plants will operate at 100 percent capacity in 2030," Tavares said, adding that the estimate is based on a workweek model of 15 eight-hour shifts.

Stellantis employs about 43,000 people in Italy, but the number could drop this year following agreements with unions in March on voluntary departures.

Last week the group said it would add production of hybrid versions of the Fiat 500 hatchback and Jeep Compass SUV as part of a broader plan for new models to be built in Italy amid a general slowdown in electric car sales.

Stellantis, Italy's only major automaker, is negotiating with the government on a plan to bring the group's production in the country back to one million vehicles by the end of this decade, up from about 750,000 last year.

Tavares said the group and the government share a "common ambition" to reach that figure but added that "one million customers" are needed to reach the goal.

The cost of energy, "absolutely not competitive," is the main problem for production in Italy.

"It is more than double what it should be compared to other countries," the manager added.

Today Acc, a battery manufacturing joint venture between Stellantis and Mercedes, said it had suspended work on gigafactories in Germany and Italy, in Termoli, to switch to cheaper batteries amid slowing demand for electric vehicles.

(Translated by Camilla Borri, editing Francesca Piscioneri)