June 6, 2023

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Stellantis to halt production at Melfi, Italy, car plant in April, union says

MILAN — Carmaker Stellantis will halt output at its plant in Melfi, southern Italy, April 2-12 for the reason that of small demand activated by the COVID-19 crisis, the UILM union explained on Monday.

Creation at the plant, the place the world’s fourth major automaker helps make Jeep Renegade and Compass designs and the Fiat 500X compact SUV, has been continuously disrupted due to weak demand and semiconductor provide shortages.

The FIM CISL union explained previous week the agency was considering forever closing 1 of its two output strains at the Melfi plant to address surplus ability in Italy.

European car or truck registrations fell 23{ed0b873b90f1b87a4f3b347f1646a477c6eee9bccb9dcbe5ac9cb67a3d16495a} 12 months on 12 months in the initial two months of this 12 months, in accordance to marketplace data, as protracted coronavirus lockdowns and consequent uncertainty retain impacting expending conclusions between people and organizations.

UILM’s Gianluca Ficco explained on Monday the corporation instructed unions the latest Melfi output freeze was precisely due to small demand and not a outcome of the international chip lack.

A spokesman for Stellantis verified the plant would be shut in that April 2-12 period.

All of Melfi’s a lot more than 7,000 workers would be place on a furlough scheme for the period.