Production from Stellantis Italy plants to fall for fifth year due to chip crisis-union

MILAN, April 6 (Reuters) – Vehicle production from sites owned in Italy by Stellantis (STLA.MI) and previously its predecessor Fiat Chrysler is set to fall for a fifth consecutive year in 2022 due to the microchip supply crunch, the FIM CISL union said on Wednesday.

Fiat Chrysler and Peugeout-maker PSA merged at the start of last year to form Stellantis, the world’s fourth-largest carmaker. At the time of the merger PSA did not have any production facilities in Italy.

In particular, car production fell 2.6% to 123,484 units, while van production fell 30.4% to 56,690, it added.

Melfi covers around 40% of Stellantis car production in Italy, while Sevel is Europe’s largest van production plant.

“The war in Ukraine is having an impact on supplies,” he said while presenting the union’s quarterly report on Stellantis production in Italy.

“There was hope that 2022 could mark an improvement on semiconductors and raw material supplies, but we now doubt this can happen,”

That would mark a fifth consecutive year of declining output, including COVID-hit 2020, and compares with a total of over 1 million vehicles leaving the assembly lines in 2017, the last time Fiat Chrysler reported rising annual production in Italy.

Stellantis declined to comment.

Reporting by Giulio Piovaccari; editing by Agnieszka Flak