Stellantis chip shortage disrupts Fiat output in Italy, may last through December

Stellantis Chip Shortage Significantly Disrupts Fiat Production in Italy

Impact and Response to the Electronic Component Shortage

Extent of Disruption in Fiat Production

MILAN, Nov 2 (Reuters) - Carmaker Stellantis said on Monday a shortage of an electronic component used in an engine control unit was causing "significant" disruption to production of some Fiat models in Italy, and could continue through November and December.

Effect on Fiat Pandina and October Sales

• The shortage of a chip from a supplier weighed on October sales, particularly of the Fiat Pandina small car, one the brand's best-selling models, Stellantis said

Efforts to Address the Shortage

• "Stellantis and Fiat are working with the highest priority to identify alternative solutions and gradually restore normal operations," the group said

Potential Ongoing and Future Implications

Production Halts at Key Plants

• The shortage could lead to further issues, including production halts, in November and December at the Pomigliano plant, where the Pandina is built, and at Mirafiori, where the Fiat 500 is produced

Impact on Engine Component Manufacturing

• The disruption could also impact Stellantis plants in Italy making engine components, including Termoli, where the N3 GSE engine used in both the Pandina and the 500 is assembled

Additional Factors Affecting Production

• Mirafiori is currently undergoing a three-week production halt that started in mid-October due to a separate component shortage, with unions pointing at weak demand for the Fiat 500 as one of the factors behind the stoppage

(Reporting by Giulio Piovaccari, editing by Giulia Segreti)