The CEO of Stellantis has addressed the current situation of the company.

Stellantis has reportedly taken action to avoid closing its plants just like automotive rival Volkswagen, Reuters learned Tuesday. Stellantis CEO Carlos Tavares shared some updates and countermeasures with the outlet.

"The company's choices for the past few years have been criticized and were not always understood," Tavaras said. 

Earlier this month, Volkswagen was forced to consider its first-ever factory shutdown in Germany since the company faced pressure to reduce operation costs. The closure was also rooted in the first-ever conflict between Volkswagen CEO Oliver Blume and the unions that held influence over the automaker.

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Following Volkswagen's sudden announcement, speculations arose that other European carmakers might consider similar actions in response to the region's low factory utilization rates, along with economic challenges and price wars across the Asian automotive sector.

After introducing a global hub for its commercial vehicle unit Pro One in Italy, Tavares stated that Stellantis is diligently working to avoid similar shutdowns.

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