May 28, 2023

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Stellantis to halt production at Italy plant in April

MILAN — Stellantis will halt production at its plant in Melfi, southern Italy, amongst April 2 and April twelve for the reason that of reduced demand triggered by the COVID-19 crisis, and not for the reason that of the world-wide chip shortage, the UILM union explained on Monday.

A spokesman for Stellantis verified the plant would be shut all through this time period. All of Melfi’s additional than seven,000 personnel will be place on a furlough scheme all through this time.

Generation at the plant, which tends to make Jeep Renegade and Compass styles and the Fiat 500X utility car, has been repeatedly disrupted thanks to weak demand and semiconductor source shortages.

The FIM CISL union explained previous week the firm was contemplating completely closing 1 of its two production traces at the Melfi plant to address excessive ability in Italy.

UILM spokesman Gianluca Ficco explained on Monday the firm told unions the newest Melfi production freeze was exclusively thanks to reduced demand and not a end result of the world-wide chip shortage.

European vehicle registrations fell 23 {ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} in the 1st two months of this calendar year, according to industry information, as protracted coronavirus lockdowns and consequent uncertainty continue to hit car demand.