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Stellantis curbs Melfi output as chip crisis cuts car production By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: This view depicts the logo of Stellantis, at the factory entrance in Hordain (France), July 7, 2021. REUTERS/Pascal Rossignol/File Photo

MILAN (Reuters) – Stellantis will operate its largest Italian facility for an equivalent of only six days in October, the UILM union said on Thursday, as a global chip shortage hits manufacturing.

Melfi’s plant produces hybrid Renegade/Compass Jeep models. Stellantis informed the labour unions. Marco Lomio, UILM, said that this amount was equal to six working days. This is also the same level as September.

Lomio stated that while orders have been placed, “the company said orders are available but there will be a severe shortage in semiconductors throughout October.”

Stellantis spokesmen confirmed that Melfi planned to produce around 8,000 vehicles in October.

Melfi employs approximately 7,300 people and can produce around 1,000 cars per day.

Stellantis is a joint venture of Fiat Chrysler (France’s PSA) and Stellantis. The chip shortage has caused production to stop at several plants across Europe and Canada. They also forecast that it will make just 1.4m fewer cars this year.

Stellantis Opel, a brand of Fiat Chrysler and France’s PSA had earlier announced it would shut down one of its Germany plants until the end the year as a result of chip shortages.

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