Stellantis production at Italy’s Sevel plant to be suspended over chip shortage

A Stellantis sign is seen outside the company’s headquarters in Auburn Hills, Michigan, U.S., June 10, 2021. REUTERS/Rebecca Cook/File Photo

MILAN, Aug 27 (Reuters) – Production at a Stellantis (STLA.MI) plant in Italy making light commercial vehicles will be halted next week due to a semiconductor shortage, a spokesperson for the carmaker said on Friday, confirming a trade union statement.

“I can confirm production at the Sevel plant will be suspended next week due to a shortage of chips from a supplier,” the spokesperson said.

Carmakers, increasingly dependent on electronic components, face stiff competition from the consumer electronics industry for chip deliveries, hit by a series of supply chain disruptions during the health pandemic.

In July, Stellantis CEO Carlos Tavares warned the semiconductor shortage could drag into next year. read more

National union Fiom-Cgil said earlier on Friday it had been told the global electronic component shortage was about to impact other plants of the Stellantis group besides Pomigliano, starting with Sevel.

It said production at its Pomigliano site had been expected to restart but remained halted.

“It is clear the effects of this supply shortage could impact workers in all the other assembly plants like Melfi,” the union said.

Reporting by Stephen Jewkes, editing by David Evans

Our Standards: The Thomson Reuters Trust Principles.

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