15/08/2022

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Low demand triggers Stellantis plant closure | Automotive Industry News

Stellantis will halt output at its plant in Melfi, southern Italy for the interval two-12 April simply because of lower demand brought on by the COVID-19 crisis, the UILM union claimed on Monday.

The union explained to Reuters output at the plant, which makes Jeep Renegade and Compass types and the Fiat 500X compact SUV, has been frequently disrupted thanks to weak demand and semiconductor offer shortages.

The FIM CISL union claimed very last week the company was thinking of completely closing a single of its two output traces at the Melfi plant to deal with surplus ability in Italy.

UILM’s Gianluca Ficco explained to Reuters on Monday the enterprise had explained to unions the most recent Melfi output freeze was precisely thanks to lower demand and not a end result of the global chip lack.

A spokesman for Stellantis confirmed to the information company the plant would be shut in that two-12 April interval.

All of Melfi’s far more than 7,000 employees would be set on a furlough plan for the interval, the report additional.