MILAN, May 28 (Reuters) - Stellantis will again
halt production at its Melfi plant in southern Italy next month
as a global chip shortage and weak demand linked to the COVID-19
pandemic keep affecting the automotive industry, UILM union said
UILM's Marco Lomio said that the company had informed unions
that production would be halted for several days in June.
In particular, production at Melfi will be completely halted
on June 3-4 and from June 28 to June 30, affecting all the
plant's more than 7,000 workers.
The company also pre-alerted unions that the stoppage could
be extended to July 1-2.
The world's fourth largest carmaker earlier this month said
it expected the global shortage of semiconductors to affect
production this quarter more heavily than in the first three
months of the year.
It said the situation should improve in the second half of
2021, but warned the disruption to the auto industry could last
Stellantis, which was formed at the start of the year from
the merger of Italian-American Fiat Chrysler and France's PSA,
makes Jeep Renegade and Compass models and the Fiat 500X compact
SUV in Melfi, one of the group's largest assembly facilities in
Production at the plant has been repeatedly disrupted this
A spokesman for Stellantis confirmed the stoppage was due to
both the semiconductor issue and weak market demand.
The automaker said earlier on Friday that an "unprecedented
global microchip shortage" was also affecting production at
assembly sites in Belvidere, Illinois; Windsor, Canada; and
(Reporting by Giulio Piovaccari, editing by Elvira Pollina and