Subject: Stellantis plant in Melfi
The Stellantis plant in Melfi has a production capacity of around 1 600 vehicles per day but is currently only producing half that number, and 3 000 of its workers have been temporarily laid off. The cause of those reductions is the widespread shortage of semiconductors, which has put pressure on the supply chain and increased vehicle prices, leading to lower demand for certain models produced at the Melfi plant (Jeep Renegades and Jeep Compasses).
According to the main trade unions, the Melfi production site, despite Stellantis’ announcements, is being shut down. If that were to happen, the Basilicata region’s GDP would fall by 7%, regional exports would shrink by two thirds and employment levels would contract by 7.5%, as more than 14 000 people would lose their jobs.
Despite the Commission’s attention to these strategic components, the Chips Act Regulation is unlikely to reverse the shortage of semiconductors in the EU in good time and thus reverse the declining production levels.
In the light of the above:
1. Is the Commission aware of the aforementioned crisis?
2. In the short to medium term, will it take specific steps to help the automotive sector to recover and thus reabsorb its redundant workers, including those at the Stellantis plant in Melfi?
Submitted:21.6.2023
Answer given by Mr Breton on behalf of the European Commission
(13 September 2023)
1. The Commission is aware of a general shortage of semiconductors in the automotive supply chain. The Commission has adopted the European Chips Act (1) which will increase the production of semiconductors in Europe and strengthen the resilience of the semiconductor supply chain, while equally addressing the need to increase the workforce in this sector. Since the adoption of the Commission’s proposal, more than EUR 100 billion of investment have been announced in the semiconductor industry in Europe. The Commission understands that Stellantis is now in the renewed talks with the Ministry of Enterprise in Italy discussing the future of the company in Italy including the Melfi plant.
2. The automotive industry is going through changes and, although the Commission has no control over the commercial decisions of economic operators (2), the EU is supporting the automotive industry and its workers. In particular, the Green Deal Industrial Plan (3) aims at developing the skills needed for well-paid quality jobs, in particular up-skilling and re-skilling programmes in strategic industries.
1 ∙ ⸱ https://digital-strategy.ec.europa.eu/en/news/commission-welcomes-political-agreement-european-chips-act
2 ∙ ⸱ The Commission understands that the Melfi site will continue to benefit from the multiple million euros investment and performance improvements that will support
the needed transformation of Stellantis towards carbon neutrality. Melfi plant will become a hub for production of 5 high-value premium vehicle models. 3 ∙ ⸱ https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52023DC0062