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

Reuters

Published Aug 27, 2021 09:37AM ET

MILAN (Reuters) - Production at a Stellantis 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.

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.