Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Stellantis briefly halts van production in Italy due to engine shortage

Published 07/02/2022, 11:58
Updated 07/02/2022, 12:00
© Reuters. FILE PHOTO: The logo of Stellantis is seen on a company's building in Velizy-Villacoublay near Paris, France, February 1, 2022. REUTERS/Gonzalo Fuentes

MILAN (Reuters) - Stellantis halted production for one day on Monday at its Sevel plant in Italy, Europe's largest van assembly facility, due to a shortage of engines supplied by a plant of the group in France, a union representative said.

Sevel produces light commercial vehicles under the Fiat, Peugeot and Citroen brands. Fiat-branded vans are fitted with engines the group builds in Italy, while engines for former PSA's Peugeot and Citroen vans are supplied by a Stellantis plant in France.

Nicola Manzi, the local representative of the UILM union, said Monday's stoppage at the Sevel plant in Italy came after an extra production day scheduled for last Saturday to help make up for lost production had also been cancelled due to engine shortages.

"Operations will restart regularly on Tuesday morning," Manzi said. "Clearly we cannot rule out more stoppages could occur in the future, due to components, materials and in general one of the many issues affecting the global supply chain."

Stellantis, which was formed last year through the merger of Fiat Chrysler and France's PSA, was not immediately available for comment.

Sevel suffered several days of production stoppages last year, like most of Stellantis plants in Italy, mainly due to a global shortage in the supply of semiconductors caused in part by disruptions to production during the COVID-19 pandemic.

As demand for vans has remained strong in Europe, Sevel now has an order backlog which it is tackling through some extra days of work on Saturdays and Sundays, Manzi said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The plant will work on Feb. 12 and 13, in two additional days that had already been scheduled before the stoppage due to engine shortages, Manzi said.

Since the start of this year the plant has been producing between 900-1,000 vans a day, not far from a pre-pandemic peak of 1,200, equivalent to almost 300,000 units a year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.