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

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In short

Supply chain constraints involving an electronic component are disrupting the production of key Fiat models across Italy, following an already weak sales performance in October. Assembly operations for the Fiat Pandina at the Pomigliano plant and the Fiat 500 at the Mirafiori site risk further halts that may extend through December. The disruption also threatens the Termoli facility, which manufactures the N3 GSE engine required for both vehicles. These setbacks compound an existing three-week stoppage at Mirafiori driven by weak Fiat 500 demand and separate part deficits.

Key points

  • Production risks extend beyond vehicle assembly lines to engine manufacturing facilities…: Production risks extend beyond vehicle assembly lines to engine manufacturing facilities like the Termoli plant producing N3 GSE units.
  • Automaker Stellantis is actively treating the procurement crisis as a top priority to sou…: Automaker Stellantis is actively treating the procurement crisis as a top priority to source alternative components.
  • The new disruption exacerbates existing assembly challenges, including an ongoing three-w…: The new disruption exacerbates existing assembly challenges, including an ongoing three-week shutdown at the Mirafiori factory caused by sluggish demand.

Sources checked by our analysis pipeline: 1

MILAN, Nov 2 : 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.

• 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

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

• 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

• 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

• 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…

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