Chip crunch to cut Stellantis’ Italy 2022 output by up to 220,000 vehicles -union

The emblem of Stellantis is seen in Turin, Italy, January 18, 2021. REUTERS/Massimo Pinca/File Photograph

MILAN, July 4 (Reuters) – A world crunch in semiconductor provide might value Stellantis (STLA.MI) as much as 220,000 automobiles this yr when it comes to misplaced output in Italy, the FIM CISL union stated, including this is able to mark the fifth yr in a row of declining manufacturing within the nation.

FIM CISL stated in its periodic report on the group’s manufacturing in Italy that Stellantis produced 351,890 automobiles within the first half of this yr, nearly 14% lower than in the identical interval final yr, with the important thing Melfi plant and the Sevel van-making facility being essentially the most affected websites.

Utilizing information for the primary half of the yr and potential full-year manufacturing based mostly on orders booked, the union estimates Stellantis might lose between 200,000-220,000 automobiles in 2022, stated Ferdinando Uliano, the pinnacle of the FIM CISL union.

“It is as if one of many group’s giant vegetation stopped for a yr,” he stated, including the chip provide scenario was not enhancing this yr and would additionally have an effect on manufacturing in 2023.

Uliano stated components together with the conflict in Ukraine and the disruption to Russian gasoline provides to Europe would solely worsen the half provide scenario for the automotive business.

A spokesman for Stellantis declined to touch upon information and forecasts supplied by FIM CISL, however repeated the carmaker had been taking choices concerning the administration of its operations on a day-by-day, plant-by-plant foundation because the begin of the COVID pandemic.

Reporting by Giulio Piovaccari; enhancing by Agnieszka Flak

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