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

by Mike Robinson

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© Reuters. FILEPHOTO: Stellantis signs can be seen in front of company headquarters at Auburn Hills, Michigan (USA), June 10, 2021. REUTERS/Rebecca Cook/File Photo

MILAN, (Reuters) – The global shortage in semiconductors will have a devastating impact on Stellantis’ Italian car production. It is expected to last longer than the COVID-19 outbreak of 2020.

Stellantis has stopped operations in several European and American facilities due to a global shortage of microchips. It was forecasted that it would produce just 1.4million fewer cars this year.

Ferdinando Uliano, FIM-CISL’s head of operations, stated that the semiconductor hurricane has caused production stopspages which are more severe than the 2020 lockdown. These conditions are expected to continue into the second half of 2022, according to FIM-CISL head Ferdinando Uliano.

FIM-CISL stated that Stellantis has produced 319,000 cars for Italy within the first nine months of 2019, 11% less than what was achieved in the same time period in 2020 when operations were stopped due to COVID-19.

Uliano stated that 2021’s full-year production will not be as high as the 461,000 units last year.

He said that it was “practically impossible”, adding that the chip situation has become more severe and that we would have to experience further closures.

Stellantis, a company formed by the merger of Fiat Chrysler (France’s PSA) and Fiat Chrysler earlier in this year, will run the Melfi facility, the largest Italian plant for six days.

However, Turin’s Mirafiori is one of the few plants that has not experienced major stops.

Uliano stated that the production of BEV 500 should continue to achieve targets for carbon emission reduction.

World’s fourth largest automaker, Ford Motor Company, has announced that it will shut down one German facility until 2015.

Uliano stated that the main danger is Stellantis deciding to defer planned investments and launch new models as sales drop due to the chip crisis.

Maserati will debut its Grecale SUV in the next month. The Alfa Romeo Tonale SUV is expected to follow.

Stellantis from Italy will meet with Italian unions Monday at Italy’s Industry Ministry for discussions about production and job opportunities in the country.

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