Automotive Cells Company Abandons Gigafactory Plans, Stellantis Reels

• Automotive Cells Company (ACC), backed by Stellantis, cancels planned gigafactories in Italy and Germany due to unmet prerequisites and EV demand concerns.
• Stellantis stock experiences a record single-day drop of over 25% following charges related to scaling down electric-vehicle development.
• ACC cites "different scenarios" being considered, while Stellantis assures commitment to gearbox and engine production in Termoli, Italy.
• The future of ACC employees remains a key focus, with Stellantis offering continued employment within its operations.

A Gigafactory's Fiasco

Hola, soy yo, Puss in Boots. It seems even giants stumble, eh? Automotive Cells Company (ACC), a venture with Stellantis at the helm, has decided to abandon its grandiose plans for gigafactories in Italy and Germany. "Forgive me, for I have failed!" one might lament, but in the cold, hard world of business, it's more about unmet prerequisites and lackluster enthusiasm for electric vehicles. A situation as tense as facing El Miedo himself.

Stellantis Takes a Tumble

Mother of mercy, did Stellantis feel the sting. Their shares took a nosedive, plummeting over 25% in a single day. Ouch. That's like falling from the beanstalk without a magic bean in sight. This came after booking charges of around 22.2 billion euros, all thanks to scaling back those ambitious EV plans. The market, it seems, did not approve. For more on the week ahead for the market, see Earnings, Jobs, and Inflation Oh My Week Ahead Unveiled.

The Blame Game

ACC, owned by Stellantis, Mercedes-Benz, and TotalEnergies, has already fired up a plant in France. But Italy and Germany? Those are on hold, like a guitar solo waiting for the right moment. They cite "different scenarios" being considered. One wonders if these scenarios involve a certain swashbuckling gato to save the day. Alas, I fear this situation requires more than just charm and a cunning plan.

Italian Woes and Promises

The UILM, an Italian metalworkers' union, isn't too pleased. They point out that Stellantis had plans for gearboxes and engines in Termoli but lacked operational details. They demand "clear and coherent industrial decisions" to offset the gigafactory failure. Stellantis, in response, has promised to invest in said gearbox and engine production, aiming to secure the plant's future. A classic "promises, promises" situation, isn't it?

Job Security in Jeopardy

Ah, the most important question: what about the workers? Stellantis assures everyone that current ACC employees will be offered continued employment within Stellantis. A noble gesture, indeed. But will these new roles match their skills and expertise? Only time will tell if this promise holds true, or if it's just a cleverly disguised deception, like when I feigned those puppy-dog eyes to steal the giant's goose.

Future of EV Market

This whole debacle raises questions about the electric vehicle market itself. Is demand truly there? Are these gigafactory plans too ambitious? Perhaps the industry needs to reassess its strategy, to pivot like a feline mid-air, before it's too late. Until then, I'll stick to my sword and boots, and let the automotive giants sort out their own… *ahem*… predicaments.