MILAN, (Reuters) – The FIM CISL union announced Wednesday that vehicle production from Stellantis-owned Italian factories and Fiat Chrysler’s predecessor Fiat Chrysler sites is expected to decline for the fifth consecutive year.

Stellantis is now the fourth-largest global carmaker. PSA didn’t have production facilities in Italy at the time the merger took place.

FIM CISL stated that Stellantis production in Italy decreased 13.5% over the previous quarter. The reason for this was the lack of semiconductors, which has a particular impact on Melfi- and Sevel-based plants. These are two main locations in Italy.

It was noted that car production dropped 2.6% to 123.484 units and van production plummeted 30.4% at 56.690.

Melfi is responsible for 40% of Stellantis’ car production in Italy. Sevel is Europe’s largest van manufacturing plant.

Ferdinando Uliano from FIM CISL stated that extraordinary factors like the coronavirus epidemic and ongoing shortage of chips were becoming a daily reality.

“The war in Ukraine has an effect on supplies,” he stated while presenting the quarterly report of Stellantis production in Italy to the union.

We now have doubts that there will be any improvement in semiconductor production and supplies of raw materials by 2022.

FIM CISL stated that based upon trends over the past three months, 2022 could see a drop in production to below 600,000. Cars will be less than 400,000.

The fifth consecutive year would see a decline in output (including COVID-hit2020) and is in contrast to the more than 1,000,000 vehicles left the assembly lines last year, when Fiat Chrysler was reporting an increase in production.

Stellantis declined comment.