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Getting Worse, Stellantis Almost Collapsed Due to Semiconductor Crisis

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The Italian FIM-CISL Trade Union said the impact of the global shortage of semiconductors on the production of the Italian car Stellantis this year will be even worse. Photo/doc

MILAN – Italy’s FIM-CISL Trade Union reveals the impact of global semiconductor shortages on Italian car production Stellantis this year will be worse and longer than the production breakdown due to the COVID-19 pandemic.

A global shortage of microchips has also forced Stellantis to shut down operations at several plants across Europe and the United States. The automaker expects to cut production of 1.4 million vehicles this year.

“Semiconductor storms are causing more severe production shutdowns than lockdowns in 2020. This kind of situation is likely to continue during the first half of 2022,” FIM-CISL head Ferdinando Uliano was quoted as saying. Autoblog, Saturday (9/10/2021).

READ: Stellantis Reduces Production Due to Lack of Chips Supply

The FIM-CISL said Stellantis had produced 319,000 cars in Italy in the first nine months of this year. This is 11% more than the same period in 2020, when operations were frozen for several weeks following the COVID-19 outbreak.

But Uliano said 2021 production would barely match the 461,000 produced last year. “This is practically impossible, the chip situation is getting serious and we will carry out further closures,” he said, adding a similar situation was expected for van production at the Sevel plant in central Italy.

Stellantis , formed earlier this year through the merger of Fiat Chrysler and France’s PSA, will operate the Melfi plant, its largest facility in Italy, for six days in October.

On the other hand, Turin’s Mirafiori, where the small 500 electric car is produced, is one of the few factories that has not experienced a major shutdown. “Production of the BEV 500 must continue to meet the carbon emission reduction target,” said Uliano.

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