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March 11, 2020 07:15 AM

FCA, Italy's top dealer enact temporary closures under virus pressure

Andrea Malan
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    The Fiat factory in Pomigliano d'Arco, above, will be among those closing their doors for several days.

    Fiat Chrysler Automobiles said Wednesday it will start implementing temporary closures at some of its Italian plants, and Italy's largest dealer group said it will shut its doors until April 3 to help combat Europe's worst outbreak of the coronavirus.

    A FCA spokesman said affected plants were in Pomigliano d'Arco, Melfi, Atessa and Cassino. Each factory will be halted for two or three days between Wednesday and Saturday (see details below). Production is scheduled to restart on Monday.

    FCA's move affects plants that account for 600,000 units a year and 4 percent of European vehicle production, Evercore ISI estimates.

    FCA said in a statement it was taking additional steps to minimize the risk of spreading the virus among employees, including intensive sanitization of all work and rest areas, to support the government's directives to curb the spread of the infectious disease."As a result of taking these actions the company will, where necessary, make temporary closures of its plants across Italy," the release said.
    FCA said that to allow greater spacing of employees at their workstations, "daily production rates will be lowered to accommodate the adapted manufacturing processes."
     

    FCA Italian plant closure plans

    Plant, model(s) and closure period
    Pomigliano d'Arco -- Panda minicar -- closed until Friday
    Melfi -- Fiat 500X, Jeep Renegade, Jeep Compass -- closed Thursday to Saturday
    Atessa (Sevel Sud JV with PSA) -- Citroen Jumper/Relay, Fiat Ducato, Peugeot Boxer -- closed Thursday to Saturday
    Cassino -- Alfa Romeo Giulia, Giulietta, Stelvio -- closed Thursday and Friday

     

    However, a source close to the matter said FCA did not expect an impact on overall production rates.

    Italian megadealer Autotorino, which sold 29,100 new cars and 22,400 used ones last year, will shut down for the first time in its 55-year history, Chairman Plinio Vanini in a message posted on Facebook.

    "We are confident that strict limitations to mobility can help bring the situation back to normal," he said.

    Autotorino has 1,700 employees and a reported revenue of 1.22 billion euros ($1.4 billion) in 2019. The company's dealerships in the northern Italian regions of Piedmont, Lombardy, Emilia Romagna, Veneto and Friuli-Venezia Giulia sell cars for the Fiat, Jeep, BMW, Mercedes-Benz, Toyota, Hyundai, Kia, Mitsubishi and Subaru brands.

    Reuters contributed to this story

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