Fiat’s Production in Europe Delayed Due to Problems With Parts Supplier image

Fiat’s vehicle production in Europe faces delays after supplier Selmat Automotive stopped the delivery of plastic components used in the Iveco trucks, 500 subcompacts and Maserati sedans.

Iveco’s plant in Spain and Maserati’s plant located neat Turin have stopped production for more than four days because supplier Selmat Automotive stopped delivery of plastic components. The Iveco facility did not operate today, while Maserati’s plant was partially open. Other plants affected by production delays last week and this one, are the facility in Serbia, which builds the 500L, and the plant in Poland which manufactures the subcompact 500.

Fiat is currently increasing production of the upscale models in the European market, including the $130,000 Maserati Quattroporte, part of its plan to stem losses on the continent by 2016. Last year Fiat lost in Europe more than 700 million euro ($908 million).

“Fiat is facing serious damages” because of the components shortage with “thousands of workers” affected, the Italian carmaker said yesterday in a statement.

Selmat CEO Enzo Maccherrone said that it told Fiat in April it will stop production between April 29th and May 2nd. Currently, the company deliveries auto parts normally.

“Fiat is making all this noise just because they wanted to buy my company at a bargain price,” said Maccherrone.

Source: Bloomberg