Stellantis Reduces Melfi Production Due to Chip Shortage Impacting Car Manufacturing By Reuters

Stellantis Faces Production Challenges at Melfi Plant Due to Chip Shortage

Milan (Reuters) – Stellantis will operate its largest Italian facility for only six days in October due to ongoing global semiconductor shortages, according to the UILM union.

The Melfi plant, known for producing hybrid versions of the Renegade and Compass Jeep models, is expected to manufacture just 8,000 vehicles next month. Marco Lomio of UILM reported that this output is equivalent to about six full working days, matching the production levels from September.

"The company informed us that while orders are available, the semiconductor shortage will continue to severely impact operations in October, preventing us from fulfilling orders," Lomio stated.

A Stellantis spokesperson confirmed the anticipated production figure for Melfi in October.

With approximately 7,300 employees, the Melfi plant has the capability to produce around 1,000 vehicles per day.

Stellantis, created from the merger of Fiat Chrysler and France’s PSA Group, has suspended production at several facilities in Europe and Canada due to the chip shortage and has projected a reduction of 1.4 million vehicles produced this year.

In addition, Stellantis brand Opel announced it would temporarily close one of its German plants until at least the end of the year, citing similar semiconductor supply issues.