Italy's Stellantis to operate its largest italian plant in October

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Italy's Stellantis to operate its largest italian plant in October

MILAN Reuters - Stellantis will operate its largest italian facility for an equivalent of six days in October, the UILM union said on Thursday, as a global chip shortage hits manufacturing.

The Melfi Plant, which produces hybrid versions of Renegade and Compass Jeep among its models, will make only 8,000 vehicles next month, Stellantis has informed labour unions, UILM's Marco Lomio said, adding that this level was equivalent to about six full working days, the same as were worked in September.

The company told us orders are there but the semiconductor shortage will persist heavily in October, not allowing orders to be met, Lomio told Reuters.

A spokesman of Stellantis confirmed the company told unions that Melfi's planned production in October was around 8,000 cars.

Melfi has an expected production capacity of about 1,300 vehicles a day with some 7,300 workers.

Stellantis, which formed through the merger between Fiat Chrysler and France's PSA, has halted production at several plants, including in Europe and Canada, due to the chip shortage and forecast that it would make 1.4 million fewer vehicles this year.

Stellantis Mark Opel said earlier it would shut one of its plants in Germany until at least the end of the year owing to chips shortages.