Fiat-Jeep plant to halt production again in May, union says

Automotive Industry

Source: Automotive News Europe, 2021-04-29

Stellantis will halt production at its Melfi plant in southern Italy from 3 May to 10 May because of low demand triggered by the COVID-19 crisis and semiconductor shortages, the UILM union said.

Stellantis makes the Renegade and Compass Jeep models and the Fiat 500X compact SUV in Melfi, one of the group's largest assembly facilities in Italy.

The main reason for the stoppage was the semiconductor shortages, UILM's Marco Lomio said on 29 April.

"That's the most serious problem," he said. "I cannot rule out we'll have further shift stoppages in May, as this issue is getting bigger and bigger and harder and harder to manage."

A Spokesman for Stellantis said the stoppage was due to both the semiconductor issue and weak market demand, adding that Melfi's more than 7,000 workers would be put on a furlough scheme for the period.

Production at the plant has been repeatedly disrupted in 2021.

Unions are concerned that Stellantis could permanently cut capacity in Melfi by closing one of its two lines, as the automaker seeks to reduce production costs in Italy.

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