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Stellantis Shares Slide After Union Warns of Production Slowdown

Stock Markets Jul 05, 2022 10:14AM ET
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© Reuters

By Scott Kanowsky 

Investing.com -- US-listed shares in Stellantis NV (NYSE:STLA) fell sharply on Tuesday, dragged lower by a union report warning that a semiconductor supply shortage will weigh on the carmaker's annual production in Italy.

The Italian Federation of Metalworkers (FIOM) said in a statement that it now expects Stellantis' output during the year to slide by as much as 220,000 vehicles. The union blamed the projected decrease on a tight supply of raw materials and chips, along with geopolitical tensions stemming from the war in Ukraine.

The FIOM added that production will fall by 13.7% in the first half of 2022, with output of commercial vehicles, in particular, slumping by more than a third.

Stellantis' plant in Melfi - which accounts for about 38% of all cars produced by the group in Italy - will see an especially sharp fall in first-half production, according to the FIOM. Volumes at the site, during the period, are seen dipping by 17% compared to the previous year.

The carmaker's factory in Sevel will also post a first-half production decline of more than 37%.

In early US trading, shares in Stellantis - the parent of American car brand Chrysler - dropped by almost 7%. Milan-listed shares in the company (Stellantis NV (BIT:STLA)) also fell by a little under 3% on Tuesday.

Stellantis is set to unveil its first-half results on July 28.

Stellantis Shares Slide After Union Warns of Production Slowdown
 

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