Stellantis’ Italy production recovery stumbles with Fiat 500 - Automotive World
By Google News Motors ·
Stellantis blames chip shortages for Mirafiori's latest halt, but its own account of the first two weeks points to weak demand. By Stewart Burnett
Stellantis has said it will keep its Mirafiori plant in Turin idle for a fourth consecutive week, extending the halt on Fiat 500 production to 9-13 November. The automaker now pins the blame on a shortage of engine control unit chips, but its own account of the stoppage’s opening weeks points to a more stubborn problem: the car just is not selling.
A Stellantis spokesperson told Reuters that the first two weeks of the stoppage, which began in mid-October, were caused by weak demand. Last week, the automaker switched to saying a chip supply gap was causing “significant” disruption to Italian production of both the Fiat 500 and the Fiat Pandina, with Mirafiori and Pomigliano facing possible temporary shutdowns into December. Around 1,400 workers at Mirafiori have been affected.
Gianni Mannori, leader of the FIOM metalworkers’ union, is among those not buying the company line. He characterised the component explanation as “an alibi”, and the company’s shifting narrative certainly gives the unions ammunition. When Stellantis halted Mirafiori in early September, it blamed an engine component shortfall at Teksid’s Carmagnola plant, which it said could not keep pace with stronger-than-expected hybrid demand. Within six weeks, the same model was idled for lack of buyers.
The volume figures favour the unions’ reading. Hybrid Fiat 500 output is now expected to reach only about 60,000 units this year against an initial target of 100,000, after a four-week summer stoppage, a September halt and a month-long autumn shutdown. Supply problems can explain individual lost weeks, but a model running at roughly 60% across a full year, with…
Originally published by Google News Motors
