The production of the new “Grande Panda” model in Kragujevac has not been postponed, but its start date remains unclear. Although there were indications that mass production of the electric vehicle at Stellantis’ factory would commence this month, Saša Đorđević, president of the Independent Union of Stellantis in Kragujevac, suggests this is unlikely. He mentioned that factory officials have stopped referencing October as the production start month. Stellantis has clarified that they never announced an October start, stating production will begin sometime in 2024 instead. They characterized rumors from certain media as unfounded, emphasizing that production is progressing according to the project’s timeline. However, the Italian magazine “Quattroruote” reports unofficially that mass production could begin in November.
The union in Kragujevac indicated they are waiting for a meeting with the factory director for more precise information.
Currently, 800 employees are engaged at the factory, which is insufficient for production to start. A total of 1,550 workers is needed to activate the production lines.
“We are still in the early stages of the project ahead of mass production, but I cannot confirm if it will begin in October or later,” Đorđević stated, adding that employees at Stellantis are working “normally” and no one is on paid leave.
Even if Stellantis had considered launching mass production of the “Grande Panda” in October, such a decision could be affected by the challenging circumstances in the European automotive industry, where companies are facing declining demand. For example, Stellantis announced at the end of September a four-week halt in production of the electric Fiat 500 due to weak demand, with plans for transformation at the Mirafiori plant in Turin, backed by a €100 million investment.
Other major players in the European automotive sector are experiencing similar difficulties. Volkswagen has twice revised its sales forecasts for this year, now expecting to sell fewer than nine million vehicles, down from an initial estimate of 9.2 million. Aston Martin has also voiced concerns about demand, while companies like Mercedes-Benz and BMW have previously had to adjust their projections.
Industry experts note that due to excess production capacity and decreasing demand, European automakers are likely to face a period of reduced profit margins. Last year, production capacity utilization in Europe was only 60%, a ten percentage point drop from 2019.
Dragoljub Rajić, coordinator of the Business Support Network, commented that the current moment is not favorable for initiating new production, both for Stellantis and other European automakers struggling to compete with Chinese firms. “The Chinese automotive industry effectively uses government subsidies for electric vehicle production, leads in lithium-ion battery manufacturing—key components for most electric vehicles—and has access to essential raw materials like lithium and cobalt from its own mines in Africa and South America. In contrast, European companies lack these advantages and are unable to maintain competitiveness in the market. As a result, production in European automotive factories is declining, along with demand for their models,” Rajić explained.
He emphasized that the production of the “Grande Panda” will largely depend on the demand for electric vehicles among European consumers. “Currently, that demand is lacking, and significant production and export of the electric vehicle from Kragujevac will hinge on whether interest in such vehicles from European manufacturers increases. The chance for European automakers to compete with their Chinese counterparts lies in EU officials allocating budget funds to support local automotive companies and implementing measures to limit the import of electric vehicles from China, similar to actions taken in the United States, where tariffs on vehicles from that country have been raised,” Rajić concluded.
For reference, the new electric “Grande Panda” model was presented in Serbia on July 22, following its unveiling at Fiat’s headquarters in Turin, Italy, on July 11.
