The global chip crisis, which is overwhelming above all the car sector, also invests Stellantis. Not only stop the production of factories Sevel, Atessa and Pomigliano. Several sources report that Stellantis was also forced to stop production at the Melfi plant. The reopening of the plant has been postponed, for now, to 13 September.
The reaction of the trade unions is not long in coming with Fiom, Fim, Uilm, Fismic, Uglm and Aqcfr who have asked the Draghi government to reconvene the table set up last June. The appeal was launched, in particular, to the Minister of Economic Development, Giancarlo Giorgetti, and to the Minister of Labor, Andrea Orlando.
Thus we read in the letter:
“The news that emerged in the meantime, most recently from the semiconductor supply crisis that is causing a strong criticality in the factories, require us to continue the discussion on the future business plan and to assign to all the plants, from the engines to the assembly to the staff bodies, a production and activity mission that guarantees employment and prospects for the future “.
Rocco Palombella, Uilm general secretary, and Gianluca Ficco, Uilm national secretary and head of the car sector, expressed themselves in particular as follows, referring to the “numerous innovations” that were presented since the last meeting on June 15: “news that they must necessarily be addressed and examined in depth with the company and the government to find the best solutions to guarantee the future of all Italian workers and the production missions in all the sites in our country “.
“Among the main innovations – they underlined – we certainly include the important agreement of Melfi of 25 June, which provides for the reorganization of the factory and the assignment of new models, the announcement by Stellantis of the construction of the Gigafactory in Termoli, which confirms the commitment in our country with important investments in the electrification process, and lastly the worsening of the semiconductor supply problem, already present in recent months, which is now paralyzing production activity, causing periodic shutdowns in practically all Italian sites. In light of all this, we asked the Government to resume the discussion and the comparison on the future of Stellantis in Italy, thousands of workers and an industrial sector that in the coming years will have to face an important challenge represented by the ecological transition ”, they concluded.
Read also Auto: production volumes to be filed for the second half due to chip crisis. Stellantis stops Sevel factory
Equita SIM: Melfi impact, there is a risk of a weaker budget than expected
About what the chip crisis means for Stellantis, commented by Equita SIM, summarizing the latest news:
“Italian trade union sources let it be known that due to chip shortage the Melfi plant (which produces Jeep Compass, Jeep Renegade, Fiat 500X) in September it will only work 5 days. This stop is added to the already announced reduction in production of Sevel (LCV under the Fiat, Peugeot and Citroen brand) and Pomigliano (shortage of seats for the production of the Panda) ”.
What will they be the consequences on the car company?
“We estimate that this interruption in Melfi could account for over 20,000 units in the third quarter, equal to over 1% of the quarterly sales of the entire group. We do not exclude that other plants of the group (even outside Italy) are exposed to the same risk, causing third quarter results weaker than expected – reads the note from the Milanese SIM – As we reported last week, this is a phenomenon that affects the entire automotive sector globally. The same problem occurred in the second quarter, but was offset by a better than expected price effect and mix; we do not exclude that this may also be repeated in the second half, but visibility on the third quarter has inevitably reduced. The low level of car stocks in the entire supply chain is, however, an element that allows a cautious optimism on the recovery of productive activity as soon as the supply problems are resolved ”.
They also speak of the Stellantis case Intesa SanPaolo analysts:
“Following the shutdown of the Sevel, Atessa and Pomigliano plants, according to various sources (Reuters, Bloomberg, Il Sole 24 Ore), Stellantis also had to stop production at the Melfi plant. The reopening has been postponed to 13 September. We highlight that Melfi, where Stellantis produces the Fiat 500X, the Jeep Renegade and the Compass, and where the group will introduce one of its four BEV platforms, it is among the main plants in Europe, with a production capacity of 400,000 vehicles and 7,200 employees. To date (first half of 2021), Melfi production represents 46.3% of Stellantis production in Italy, equal to 113,000 vehicles, up 37.5% on an annual basis and still far from pre-Covid levels“.
“In emphasizing that we expected further stops in production – specify from Intesa SanPaolo – a factor that could cause the volatility of the stock, we believe that the interruptions, in Italy, are less penalizing than the potential interruption of production that could occur in thearea NAFTA”. That said, “we expect that the shortage of chips, which is affecting all car manufacturers, also affects part of 2022; for 2021, we believe that the estimates on world vehicle production could be revised further downwards ”. Intesa analysts believe that an increase in global car production in 2021 is likely in this context. equal to 7-8%, compared to the previous outlook of growth between 11 and 12% “. It should be noted that Intesa SanPaolo has a “buy” rating on the Stellantis share, against a target price of 24.6 euros.
The people also talk about the Melfi case Banca Akros analysts:
“The Melfi plant is the largest of Stellantis in Italy”, reads the note, recalling the 7,200 employees and “a theoretical production capacity of 350,000 units per year”.
“We remind you that Stellantis has intention to restructure production in Italy and we underline that the previous Italian operations of FCA are not sufficiently profitable, as well as the saturation of the production capacity is contained at around 50-60% “. Consequently, the analysts of Banca Akros believe that the news concerning the stop of the Melfi plant is “negative”, even if “in part already taken for granted”.