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Fiat Chrysler halts European production as coronavirus hits demand

MILAN — Fiat Chrysler Automobiles (FCA) is halting production for two weeks at most of its European plants to help protect staff against the coronavirus pandemic and adjust to a slump in demand, the Italian-American carmaker said on Monday. Italy has been the European country worst hit by the crisis and the first to enforce a nationwide lockdown, which has now been replicated by Spain and, to a lesser extent, by France as the virus sweeps through the continent. With all non essential services closed, including car dealers, and people forced home except for strict working needs, many forecast a heavy fall in car sales in March. FCA — which according to analyst estimates produces around 25% of its vehicles in Europe — said the suspensions through March 27 would allow it "to effectively respond to the interruption in market demand by ensuring the optimization of supply." Ferrari, meanwhile, said it closed its two plants until March 27. Ferrari said it had so far ensured production continuity, and it already implemented all the health measures decided by the Italian government at the two sites, in hometown Maranello and in Modena. But it was "now experiencing the first serious supply chain issues, which no longer allow for continued production." Marco Opipari, an analyst at Fidentiis, said a few weeks of closures was not a big problem in an over-supplied European auto industry and lost production could be recovered later on. "The real problem is on the demand side, people are not buying cars now, and sales volumes are expected to be very bad in March, with a real impact on automakers' earnings," he said. FCA said in a statement that production for its FCA Italy and luxury Maserati units would stop for two weeks, extending a temporary closure period already planned for some Italian facilities. Affected plants are Melfi, Pomigliano, Cassino, Mirafiori, Grugliasco and Modena in Italy, Kragujevac in Serbia and Tychy in Poland. The FIOM union said FCA's decision was "necessary". The carmaker said the freeze would help it to resume activity promptly once market conditions allow it. "The group is working with its supply base and business partners to be ready to enable our manufacturing operations to deliver previously planned total levels of production despite the suspension when market demand returns," it said.

Stellantis is open to putting a gas engine in its EVs to meet demand

With the EV segment caught in a tug-of-war between market demand and government regulations, carmakers are having to adapt to avoid losing both money and sales. Stellantis is keeping every option on the table, including putting a gasoline engine in its electric models. Natalie Knight, the chief financial officer for Stellantis, made the announcement while presenting the carmaker's first-quarter shipment and revenues results. She cited the Jeep Wagoneer S as an example: Unveiled in January 2024, it will go on sale with an electric powertrain, but the brand hasn't ruled out expanding the lineup with a gasoline-powered model later on, according to Wards Auto. It could be a hybrid, or it might not get any type of electrification. The call will depend on whether there is "a clear demand for that in the market," the executive said. Compare that with comments from new Jeep CEO Antonio Filosa, who has said hybridizing the Wagoneer S isn't in the cards — but making a PHEV version of the all-electric upcoming Recon, however, might be. "I don't want to ignore the fact that we want to stay close to the consumer, and if we see there's an opportunity with those models that we introduced as BEVs first, we'll look into that," Knight said. Stellantis plans to launch 25 new models globally in 2024, and 18 of those will go on sale with electric power. However, that doesn't necessarily mean they'll remain electric-only throughout their production run. The brands that live under the Stellantis umbrella can build a gasoline-powered version of an EV with relative ease because many of the cars in the group's portfolio ride on a multi-energy platform. For example, the new Dodge Charger (pictured) will go on sale with an electric drivetrain later in 2024, but the range will grow with the addition of a 3.0-liter straight-six in 2025. Across the pond, the Jeep Avenger (a small, hatchback-like crossover not designed with our market in mind) was hyped as an all-electric model when it made its debut in 2023, but it quietly gained a gasoline-electric hybrid drivetrain in early 2024. The city-friendly Peugeot 208 is offered with piston or battery power, too. One of the next electric recipients of a gasoline engine might be the new-to-us Fiat 500e. The retro-styled hatchback has exclusively been available as an EV since it went on sale in Europe in 2020, but executives are reportedly looking at turning it into a hybrid due to slow sales.

FCA, Ford idle plants due to semiconductor shortage

DETROIT (Reuters) - Ford and FCA will become the latest automakers to idle production facilities due to a semiconductor shortage. Ford's Louisville Assembly Plant in Kentucky will idle for a week, borrowing a down period from later in the year to compensate. Per Automotive News, FCA is idling its Brampton facility in Ontario, Canada, and one other site which has not yet been identified.  Louisville Assembly is the production site for the Ford Escape and Lincoln Corsair SUVs; Brampton Assembly produces the Chrysler 300, Dodge Charger and Dodge Challenger for FCA.  A Ford spokeswoman, who declined to identify the semiconductor supplier, confirmed the temporary shutdown to Reuters. In this, FCA and Ford join Nissan and potentially Honda in idling production in the wake of the shortage, which also hit Volkswagen late last year. The shortages are being blamed on consumer demand for silicon after production slowdowns resulting from the coronavirus pandemic. Volkswagen said it had to adjust production schedules in China, Europe and North America to compensate.  Nissan said it planned to reduce production of the Note, a hybrid electric car, at its Oppama Plant in Kanagawa prefecture, Japan, but did not give details of the scale of the output cut. The Nikkei newspaper reported that Nissan would slash its Note production at Oppama to about 5,000 units in January, from an initially planned 15,000 units. "A global shortage of semiconductors has affected parts procurement in the auto sector. As a result of this shortage, the Oppama Plant in Japan will adjust production in January, reducing production of the Nissan NOTE," Nissan said in a statement. (This article contains reporting from Reuters.)     Auto News Plants/Manufacturing UAW/Unions Chrysler Dodge Ford