Stellantis production in Italy will drop in 2022 for a fifth year, according to Union

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MILAN (Reuters) – Carmaker Stellantis is expected to see its vehicle production in Italy fall for the fifth consecutive year in 2022, mainly due to shutdowns caused by a prolonged shortage of chip supply, the FIM union said on Friday. ICFTU.

Based on data for the first nine months of the year, FIM-CISL estimates that Stellantis, owner of brands such as Fiat, will produce fewer than 650,000 vehicles by the end of the year in its Italian factories, compared to 673 574 in 2021.

This would mean a shortfall of around 200,000 units compared to the potential generated by orders already booked, the union said in its quarterly report on Stellantis production in the country.

Ferdinando Uliano, FIM-CISL’s automotive manager, said chip shortages were the main reason for the drop in production, but problems were also occurring with other parts, without giving further details.

The chip issue “will affect 2023 as well,” Uliano said as he introduced the report.

“The war in Ukraine, the shutdown of Russian gas supplies… can only further aggravate the problem of raw material supply and costs,” he added.

A total of 235 working days were lost between January and September due to production stoppages, according to the report.

“We have not yet returned to pre-pandemic levels,” Uliano said.

In the first nine months of 2022, Stellantis’ production in Italy fell 2.4% year-on-year to 515,380 vehicles, FIM-CISL said. This is a slightly smaller drop than in the first half, when disruptions in the transport sector also affected production.

Production of light commercial vehicles at the Stellantis plant in Sevel in central Italy – Europe’s largest van assembly plant – fell 27.5% year-on-year.

Automobile production, however, increased by 14.1% over the same period, helped by the new Alfa Romeo Tonale and Maserati Grecale models, which started production at the Pomigliano and Cassino plants at the end of the second quarter.

(Reporting by Giulio Piovaccari; Editing by Keith Weir)

Copyright 2022 Thomson Reuters.

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