MILAN — Stellantis will halt output at its plant in Melfi, southern Italy, between April 2 and April twelve because of low desire triggered by the COVID-19 crisis, and not because of the worldwide chip shortage, the UILM union explained on Monday.

A spokesman for Stellantis confirmed the plant would be closed all through this period of time. All of Melfi’s additional than 7,000 staff will be set on a furlough plan all through this time.

Generation at the plant, which will make Jeep Renegade and Compass products and the Fiat 500X utility car, has been repeatedly disrupted due to weak desire and semiconductor provide shortages.

The FIM CISL union explained previous 7 days the enterprise was taking into consideration permanently closing a single of its two output lines at the Melfi plant to address surplus potential in Italy.

UILM spokesman Gianluca Ficco explained on Monday the enterprise instructed unions the latest Melfi output freeze was precisely due to low desire and not a final result of the worldwide chip shortage.

European vehicle registrations fell 23 percent in the first two months of this year, in accordance to marketplace information, as protracted coronavirus lockdowns and consequent uncertainty continue to hit car desire.