Automotive giant Stellantis plans to halt production at its plant in Melfi, Italy from Apr 2-12 due to a slump in demand caused by the COVID-19 pandemic.
According to media reports, the factory produces more than 1,000 cars per day and employs around 7,000 employees who will be furloughed for the 10-day period.
A local union has also reported that Stellantis plans to permanently shut one of the two production lines at Melfi as it currently views the market as oversupplied. The plant produces Jeep’s Renegade and Compass model along with Fiat’s 500X model.
Car sales in the EU fell by 21.7pc in the first two months of the year compared to 2020, according to the latest European Automobile Manufacturers Association data, which also indicated that the auto market in Italy was one of the worst affected ones in the EU.