Stellantis is investigating the closure of the line at the Melfi car plant in Italy
© Reuters. FILE PHOTO: Stellantis logo at the company’s factory in Hordain
By Giulio Piovaccari
MILAN (Reuters) – Stellantis is currently reviewing a plan to close one of two production lines at its Melfi auto plant in southern Italy, the FIM CISL union leader told Reuters.
Jeep’s Renegade and Compass models and the Fiat 500X compact SUV are manufactured in Melfi, which is the most efficient Stellantis plant in Italy, but could be relocated to a single production line.
The closure of a Melfi line could be a first step by General Manager Carlos Tavares to combat overcapacity in Italy.
The automaker’s production is being scrutinized for costs in the country as it costs more than anywhere else as Stellantis aims to save more than 5 billion euros per year.
FIM CISL’s Ferdinando Uliano said Thursday that the plan was being reviewed but Stellantis had not made a decision and the union had not yet received official confirmation that such a project was being considered.
Tavares had undertaken not to cut jobs or close any plants after the company was founded from the merger of Fiat Chrysler and France Peugeot (OTC 🙂 manufacturer PSA at the beginning of this year.
“We are very concerned,” said Uliano. “Once you’ve reduced the production capacity in one location, it is very difficult to regain it.”
Stellantis was not immediately available for comment.
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