Chip crisis hits Stellantis’ Italy output more than COVID did, union says

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A view exhibits the emblem of Stellantis on the entrance of the corporate’s manufacturing unit in Hordain, France, July 7, 2021. REUTERS/Pascal Rossignol/File Photograph

MILAN, Oct 8 (Reuters) – The affect from a worldwide semiconductor scarcity on Stellantis’ Italian automotive manufacturing this yr will likely be worse and longer-lasting than the injury to output brought on by the COVID-19 pandemic in 2020, Italy’s FIM-CISL union mentioned on Friday.

A worldwide microchip scarcity is pushing automakers to decelerate manufacturing, with Stellantis halting operations at a number of services throughout Europe and the US. The carmaker forecast it will make 1.4 million fewer automobiles this yr.

“The semiconductor hurricane is inflicting manufacturing stoppages which might be weighing greater than the lockdown in 2020,” FIM-CISL head Ferdinando Uliano mentioned. “The forecasts are that such state of affairs will stick with it for the entire first half of 2022”.

FIM-CISL mentioned Stellantis had produced 319,000 vehicles in Italy within the first 9 month of this yr, 11% greater than in the identical interval of 2020, when operations the place frozen for a number of weeks following the COVID-19 outbreak.

However Uliano mentioned 2021 full yr manufacturing would hardly match the 461,000 items produced final yr.

“It is virtually unimaginable, the chip state of affairs is getting extra critical and we’ll have additional heavy closures,” he mentioned, including an identical state of affairs was anticipated with van manufacturing on the Sevel plant in central Italy.

Stellantis, fashioned earlier this yr by the merger of Fiat Chrysler and France’s PSA, will function the Melfi plant, its largest Italian facility, for an equal of solely six days in October.

Alternatively, Turin’s Mirafiori, the place the electrical 500 small automotive is produced, is among the many few vegetation which haven’t suffered main stoppages.

“Manufacturing of the BEV 500 should go on to fulfill targets on carbon emission discount,” Uliano mentioned.

The world’s fourth largest carmaker has additionally determined to shut one German plant till the top of the yr.

“The primary threat is that Stellantis decides to delay deliberate investments and new mannequin launches, because the chip disaster pushes gross sales down,” Uliano mentioned.

The carmaker will current Maserati’s Grecale SUV subsequent month, adopted by Alfa Romeo Tonale SUV, with sale due from June 2022.

Italian unions will meet Stellantis on Monday at Italy’s Business Ministry to debate manufacturing and jobs within the nation.

Reporting by Giulio Piovaccari; Modifying by Alexander Smith


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