Auto

Stellantis will halt production at Europe’s biggest van plant on chip shortage

MILAN — Production at Stellantis’s Sevel plant in Italy, which makes light commercial vehicles for Fiat, Peugeot and Citroen, will be halted due to a shortage of chips.

With a daily production of about 1,200 vans, the factory is the largest van assembly facility in Europe.

The plant employs about 6,500 people and produces the Fiat Ducato, Peugeot Boxer and Citroen Jumper/Relay vans.

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

Earlier, national union Fiom-Cgil said the automaker’s Pomigliano site in Italy had been expected to restart production but remained halted.

The union said it had been told that the global electronic component shortage was about to impact other plants of the Stellantis group besides Pomigliano, starting with Sevel.

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

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

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