Stellantis to temporary stop production at Italian car plant in April

Stellantis will temporarily stop production at its plant in Melfi, southern Italy for the period April 2-12 due to low demand after the COVID-19 crisis, the UILM union said on Monday.

Production at the plant, where the automaker makes Jeep Renegade and Compass models and the Fiat 500X compact SUV, has been repeatedly disrupted because of weak demand and semiconductor supply shortages.

The FIM CISL union said last week the automaker was thinking about permanently closing one of its two production lines at the Melfi plant to address excess capacity in the country.

European car registrations dropped 23% year on year in the first two months of this year as the coronavirus lockdowns and consequent uncertainty keep affecting businesses and individuals.

UILM’s Gianluca Ficco said on Monday the company informed unions the latest Melfi production freeze was specifically because of low demand and not a result of the global chip shortage.

A spokesman for Stellantis confirmed the plant would be closed in that April 2-12 period.

More than 7,000 workers of Melfi would be put on a furlough scheme for the period.