Stellantis, how are the productions in the Atessa, Cassino Melfi, Modena and Pomigliano plants going
Numbers, goals and scenarios. What happens in the Stellantis plants in Atessa, Cassino Melfi, Modena and Pomigliano. The speech by Ferdinando Uliano, national secretary of Fim Cisl
Production stops continue due to the lack of semiconductors, lost 540 work shifts equal to 235 working days. The productions of the new Alfa Tonale and Maserati Grecale give breath to Pomigliano and Cassino.
STELLANTIS ITALY PRODUCTION SITUATION IN THE FIRST NINE MONTHS 2022
Production figures still show a negative figure equal to a reduction of -2.4% compared to 2021. Specifically, in the nine months of 2022, 515,380 units were produced, including cars and commercial vans, compared to 528,108 in 2021. Production of cars, equal to 363,380, marks an increase of + 14.1%, while that relating to commercial vehicles marks a significant reduction of -27.5% in terms of volumes equal to -57,573 commercial vehicles (tot. Prod. 152,000 in the 9 months of 2022).
If we compare the production data to the pre-covid period and therefore to 2019, the situation shows an overall loss in volumes with a – 18.3% (cars + commercial vehicles), with cars at -11.4% and vehicles commercial at – 31.3%. The cause is largely attributable to the stop in production caused by the lack of semiconductors and other components, and in the first part of 2022,
also by the difficulties caused by the transport stop. The shortage of semiconductors began to appear in terms of production blocks already in the first months of 2021, but it worsened heavily in the second half of 2021 and continues very significantly also in the first quarter of 2022. A situation that will also affect the year 2023.
The situations of loss of volumes are found in the two plants, Melfi (-3.2%) and Sevel (-27.5%), which have always represented the Italian plants with a greater contribution to the overall growth in volumes.
On the other hand, in the other car production plants there is a positive figure compared to 2021, largely determined by the most recent production launches. The volume growth of the 500e continues in Mirafiori, while the entry into production of the Maserati Grecale and the Alfa Romeo Tonale boost production in Cassino and Pomigliano D'Arco. The positive performance of the Modena plant continues with the Maserati MC20.
2022 could be envisaged as the fifth consecutive year of decline in Stellantis production in our country. If in the time span of four years, 2017-2021, 35% of total production had been lost from 1,035,454 to 673,475, 45% in cars alone (from 743,454 to 408,526), with the trend of further reduction generated in in the first 6 months of 2022, on an annual basis, we risk falling below 650,000 units (-37% compared to 2017) between cars and commercial vehicles, with car production just above 410,000 (approximately -40% compared to 2017). We would have a completely opposite situation if there had not been production stops for semiconductors: we estimate that in 2022 approximately 200,000 cars will be lost compared to the production potential generated by the orders acquired.
The issue of the supply of raw materials, semiconductors and the rapprochement of the labor chain is a geopolitical problem, which the government of our country must address in a strategic manner also in the European context. The war in Ukraine, the stop to supplies of Russian gas, the redefinition of flows in the various markets, can only further worsen the problem of obtaining and costing raw materials.
This dramatic situation for the sector, as Fim-Cisl we have denounced several times at ministerial level, starting from the automotive table at the MISE and we will do it as soon as we are summoned by the new government. Our concerns concern the workers who are heavily affected in terms of income and employment by this situation, as well as the negative repercussions that are cascading across the sector. Never before has a situation of this magnitude arisen in the automotive sector: car manufacturers are not physically able to fulfill the orders already acquired. Another 53 working days were lost in this third quarter as well.
INVESTMENT SITUATION INDUSTRIAL PLAN FCA ITALY 2019-2021
The latest investments foreseen in the 2019-2021 plan of 5.5 billion FCA are practically in the completion phase. Last month the production, also in hybrid versions, of the Grecale SUV at the Cassino plant and the Alfa Romeo Tonale SUV in Pomigliano d'Arco started. The next launches will concern the two Maserati GT and GC that will be produced in the Turin Polo in the last quarter of 2022.
SITUATION IN THE FINAL PRODUCTION PLANTS
Turin Production Center Plant
The production volumes measured in the first 9 months of 2022 amounted to 70,340 units compared to the 54,290 recorded in 2021 (+ 29.6%). The greatest weight of growth continues to be determined by the production of the 500 bev which, starting in October 2020, in 2021 stood at 53,819 units. From 10 January the 500e line started in two shifts, doubling the current production, which today averages about 370 cars per day, with a + 45% growth compared to the first nine months of 2021 (from 38,830 to 55,340 ).
The current trend suggests a 2022 with over 70,000 Fiat 500e produced. Naturally semiconductors permitting, which to date have almost spared the Turin plant, with the loss of only n. 28 shifts (14 days) on the 500e line.
80% of the volumes of the Turin plant are represented by 500 bevs, the remaining 20%, just under 15 thousand cars, is represented by the Maserati Levante, Ghibli and Quattroporte productions which from 17 January 2022 are all produced on the "Maserati Line" of Mirafiori, which drives only on one turn. Following the preparation of the production of Quattroporte and Ghibli on a single line, the start of production of the Maserati in Mirafiori at the beginning of the year did not start immediately, but despite this in the nine months of 2022, with the 15,000 units it has in fact reached the last year's production. We have some concerns about the last quarter of 2022, in fact we find a production decline on the Maserati line with the request for 4 days of Cig between October and November.
The consolidation of Maserati production in Mirafiori, together with a specific guarantee commitment on the investment starting from 2024 of Maserati's future electric lightning platform, will allow for the modernization of all Maserati cars with the new engines by 2025, giving perspective to the site. productive and creating the conditions for greater certainty on employment aspects.
In the meantime, the new Maserati Gran Turismo and Gran Cabrio are making their appearance on the Maserati line, in the testing phase, where production is expected to start towards the end of the second half of the year. The staff currently employed to manage the production climb of the two new models will have to be strengthened.
The full-electric version is already scheduled for 2023, to which the replacement of the E / E + sedan models (current segment of Ghibli and Quattroporte) and Levante will be added from 2024.
On the Maserati world, there are many expectations from both trade unions and companies, the "dare Foward 2030" plan aims to increase the weight of new cars in the premium and luxury vehicle segments by three times, with an increase in revenue four times and profitability five times. Our expectations for Turin are first of all to return to 2017 levels where Maserati volumes were exactly double those achieved in 2021.
Plant Maserati Modena
Maserati production at the Modena site reached 950 units in the first nine months of 2022 (+ 76.9% vs 2021). A consistent growth also because Maserati's super sports car, the new MC20, saw its production launch in April 2021. The growth in volumes allowed the saturation of the production capacity of the Modena Plant, eliminating the use of social safety nets already in 2021 . In the Modena plant we work at full capacity. The volumes of MC20 are constantly growing. It is very likely that in 2022 the threshold of the 1,000 Maserati MC20s will be exceeded. A significant milestone that could also lead to an increase in the workforce. In the new industrial plan, a full electric version on the Folgore platform is expected by 2025.
Equally important to consolidate and strengthen Maserati's presence in Modena is the investment underway in the new painting plant called FuoriSerie, dedicated to customizing the Trident models.
Plant of Cassino
Production stood at 40,730 units which shows an increase of + 25.1% compared to 2021. A first positive sign, which in any case is -1.8% below the pre-pandemic 2019 figure, although improving after the launch of the Maserati Grecale production.
Of course if we compare the production to 2017, the first year in which Giulietta was joined by the launch of Giulia and Stelvio, the productions were 2.5 times more (as of September 2017 n.100,985). Since 2017, the plant has continued to lose volumes and employment. More than 65% of production was lost and over 1100 employees.
30% of current production is represented by Alfa Romeo Giulia and 53% by Alfa Romeo Stelvio and 17% by the new Maserati Grecale. Production was conditioned by a continuous production stop caused by the lack of semiconductors, in the first six months there were a total of 46 work shifts, partly covered with CDS and with production recoveries to be made. In the remaining working days, however, we marched at reduced speed with about 150 workers in social safety nets every day. The productions of Giulia and Stelvio have long been carried out on a single central shift. In the second quarter of this year the production of the new Maserati Grecale SUV started, it is essential to fully grasp this important innovation and reverse the strongly negative trend of the Cassino plant, and for the FIM-CISL this means eliminating the use of shock absorbers. and create the conditions to welcome other new cars in the premium and luxury segments. Potentially it is a plant with a production capacity of around 300,000 cars, so if the strategy is to quadruple revenues in the premium and luxury segment (Maserati, Alfa Romeo, DS and Lancia), like Fim-Cisl we ask that new assignments.
With the Maserati Grecale, the premium platform with electric motorization will be available in Cassino as early as 2023. In the meantime, the hybrid versions are already in production and training courses have been launched for the personnel who will produce for future electric versions, which will then also be developed on the other two Alfa Romeo models present in the Plant.
Plant of Melfi
In the last quarter, the negative gap with respect to 2021 production decreased, from -17% in the first half of the year it has now reached -3.2%. 137,660 cars were produced in the first nine months. It is the only car assembly plant that shows a loss in relation to 2021. If we compare it to 2019, it is still the one with the greatest loss, of over 63,800 cars (-32%).
Of the nearly 137,660 cars produced, 23% is represented by 500x, the rest are Jeep, 32% Compass and 45% Renegade cars. If the trend of the last quarter is confirmed, contrary to the fears of the 1st half, the production levels of 202 will be reached. by Renegade and 500x.
Melfi weighs more The block caused by semiconductors being one of the factories with a greater number of production. After all, Melfi has represented for many years the factory that alone
produced half of FCA's cars in our country. Today the share has decreased but still weighs 38%.
The production stop generated by the lack of semiconductors has weighed heavily on the plant, in the nine months there are about 238 shifts of production stop. We must then add that all this has then led to continuous stops at the current 17 rounds. The non-start of the 20 shifts initially planned for March 1 and the de facto drop to 15 shifts resulted in an employment backlash of about 1,500 workers. To avoid negative repercussions, it was necessary to intervene with various tools, intra-group transfers and incentives to leave on an exclusively voluntary basis (in the last year it involved 880 workers), signing a new Solidarity Contract. With the latest agreement we have secured employment, through the use of other extraordinary social safety nets to accompany the transition of the Melfi plant towards the production of the four new fully electric multi-brand models, on the Bev STLA Medium platform, confirmed in the plan. Stellantis starting in 2024.
Plant of Pomigliano
Production at the Pomigliano d'Arco plant reached 113,700 units (+ 27.9% compared to 2021). If we compare it to the pre-covid period of 2019, the decline is -26%. The growth in volumes compared to 2021 is due to the increase in production of the new Alfa Romeo Tonale SUV with 8,700 units. The production stops due to the lack of semiconductors and other components were 98 shifts (49 days), to which we must add the presence of about 200 people every day on layoffs.
To date, the Pomigliano plant employs 4,250 workers, about 230 fewer as a result of voluntary exits. Today the plant is organized in two shifts on the Panda line and one shift on the Tonale line, with a production of about 160 cars uphill. The forecasts are positive, a production growth of the Tonale is expected and the production launch of the Dodge Hornet, this should lead to the transition to two shifts, with a benefit both on volumes and on occupancy. We are concerned about the production difficulties due to the shortage of semiconductors and other components that risk postponing the start of the second round on the Tonale.
The confirmation of Panda production until 2026 and the increase in production of Tonale and Hornet, will put the plant in the condition of potential full employment and a zeroing of social safety nets. In addition, all employees of PCMA and the Nola Logistics Center are in the process of being placed in the Pomigliano plant.
Plant of Sevel – Atessa
Production in commercial vehicles reached the quota of 152,000 units, with a negative result compared to 2021 of – 27.5% where 209,573 units were produced. We are below 13% compared to the covid period of 2020. The situation of production stoppages for semiconductors strongly affected production results in 2021 and 2022. In 2021, compared to initial estimates that saw an increase in shifts starting from the month in May 2021, about 40,000 vans were lost due to the lack of semiconductors, with a negative impact on employment levels with the lack of confirmation of the 600 temporary workers.
Since the beginning of the year, about 130 work shifts have been lost due to the semiconductor problem, equal to about 49 working days. To date, the semiconductor problem remains the most serious, especially for Sevel, there is an important number of orders that are not fulfilled and above all the cost to workers due to the use of social safety nets becomes increasingly heavy.
The agreement with Toyota, which was completed in recent months, represents further potential for the future of Sevel, in addition to that which resulted from the start in October 2021 of the production of commercial vehicles also by Opel and Vauxall. In the Stellantis Plan, the establishment of a specific area of the commercial vehicle business represents a clear signal of strengthening both investments and volumes. We expect a strengthening in the field of sustainable engines with the development of hydrogen technology in addition to that already in production of electricity. For Fim-Cisl, the Sevel plant must continue to maintain its leadership in commercial vehicles. We will continue to monitor and carefully check the internal balances of the group with respect to Polish production,
making sure that the production of the new Polish plant is additional and not a substitute for the Italian one. In line with Sevel's strengthening commitments, it is necessary that Stellantis stabilize permanent workers with a positive solution for the temporary workers still in force in the company (about 250), and undertake the commitment to recover as a priority the over 680 whose contracts were terminated in 2021 due to the lack of semiconductors. At the restart of the volumes this is a question that we will forcefully pose to the Stellantis Group.
THE BUSINESS PLAN OF THE STELLANTIS GROUP
The details of the "Dare Foward 2030" plan
The "Dare Foward 2030" plan, presented on 1 March 2022, which focuses on the strategy with zero carbon emissions by 2038, with a 50% reduction by 2030. The goal is to have by 2030 100% of sales in Europe and 50% in the United States consist of battery electric vehicles (BEVs), forecasting more than 75 BEV models (45 BEVs in 2024) and to reach approximately five million BEV vehicles in global annual sales by 2030. The Stellantis group will invest 30 billion for electrification by 2025. Battery capacity is being increased from 140 gigawatt hours (GWh) to 400 GWh, with 3 factories in Europe (1 of which in Termoli) and 2 in the USA. 100 new model launches have been planned globally from 2022-2030, out of n. 4 vehicle platforms (small, medium, large, frame) and n. 3 tech platforms precisely the Stla brain (processing core), the Stla Smartcockpit (user interface developed with Foxconn – the producer for Apple of the iPhone), and the Stla autodrive (which governs autonomous driving). The weight of new cars from the premium and luxury vehicle segments (Maserati, Alfa Romeo, Lancia and Ds) will triple by 2030 (from 4% to 11%) and revenues will increase four times and profitability 5 times. Leadership in the commercial vehicle market will be strengthened, strengthening it with new launches and electric offerings, and the extension of hydrogen fuel cell technology to large vans will be provided in 2024. Investments and R&D expenditures will equal '8% of revenues.
A "step by step" plan must provide for checks and trade union discussions. After the government takes office, a new meeting with Stellantis is necessary.
The “Dare Foward 2030” Plan is structured over three time frames, of 3 years each. In the first (by 2024) the commitments are defined, in the second (by 2027) the objectives, in the third (by 2030) the directions are defined. The plan will be adapted according to the context and changes that may affect the strategies in the sector. This means that decisions will be made during the plan, “step by step”. Given the difficult international situation, already in July we asked for a meeting on the implementation phase of the plan, also with a specific passage in the Ministerial seat to address all the aspects necessary to guarantee development and prospects in every working context, for which we have not yet received positive responses or for which uncertainties remain, with the aim of obtaining an industrial and employment perspective for each reality. As soon as the new government takes office, an immediate convocation of the ministerial table is necessary.
In the last month we have instead had two official communications that create strong concerns in terms of employment and future prospects: the first concerning the VM plant in Cento with the interruption of production of the V6 diesel engine and the second that concerning the downsizing of activities. of FCA Services, specifically those concerning the Cnhi and Iveco world. In both situations we have been given assurances that unilateral dismissal actions will not take place, but for us it is necessary to identify all the answers necessary to secure employment and activities for the future. If the goal, as the CEO of Stellantis says, is “not to close the factories, but to transform them technologically”, concrete solutions are needed that go in this direction also for these two realities. When this happens we recognize it, in fact we have given a positive opinion with respect to two important industrial initiatives in the Mirafiori district. One related to the new hybrid gearbox (former Fucine area, production starting from 2024) and the other to the circular economy. Initiatives that will make it possible to respond positively to maintaining the current occupation of the Turin area.
Of course, the recent confirmation in Europe of the stop in 2035 of endothermic engines, places at the center of the comparison the industrial choices for the transition of Stellantis for plants connected to engines and more exposed to the transition to electric, such as plants that produce engines, gears and stands like Teksid.
The continuation of the discussion with the Stellantis Group on the implementation of the plan must obtain concrete and positive progress on all aspects: from the allocation of future platforms and new productions, to the role assigned to Italy in the various areas starting from research, the relaunch of the various Italian brands, as well as the possibility of producing cars of other brands of the group in our country. The main objective remains the safety of establishments, institutions and employment. We will be unavailable to operations aimed at penalizing and further reducing the industrial and employment assets of Stellantis Italia, just as we will be unavailable to choices that worsen the working conditions and safety of workers. Finally, it is important that the future government oversees and verifies with Stellantis the strategies of the group towards the related companies of our country, in order to obtain specific guarantees for the important automotive components supply chain. In this regard, we are particularly concerned about the network of suppliers at the Melfi plant.
THE TABLE OF THE AUTOMOTIVE SECTOR
The critical situation that the automotive sector as a whole is going through and the negative repercussions affecting the related industries and components, clearly emerge from the Stellantis production data that we have processed and from the trend in registrations.
The shortage of semiconductors is also characterizing 2022, causing a situation of desaturation of the plants and therefore it will be necessary to guarantee coverage in the use of social safety nets, otherwise there is a risk of their exhaustion for some companies in the sector. The problems that have arisen in the context of energy-related costs add further difficulties to component companies.
There is also a lack of specific interventions for professional training, necessary to govern the process of changing professional skills and to protect workers in transition processes.
• The Reindustrialisation Fund: I lost another four months with the government crisis. The resettlement of the automotive table and the resumption of policies in support of the sector are urgent.
We spent almost a year with the past government to obtain a specific fund, for a policy of reindustrialisation of the sector that avoids a negative employment impact of over 75,000 workers in the auto sector. The allocated Fund is approximately 8 billion over 8 years.
The Government Crisis made us lose another 4 months of time, in order to have an impact on the relaunch policies of one of the most strategic sectors of our industry. All the unknowns remain about the intentions of the future government with respect to the sector.
In the last meeting at the Ministry of Economic Development we reiterated as Fim-Cisl that the resources for the incentives to demand (purchase of sustainable cars), should not draw from this Fund. This is to avoid that only the incentives for the purchase of sustainable cars, essential to incentivize the purchase of vehicles with a 50% higher cost, (650 million for three years starting from 2022) completely steal the resources for reindustrialisation. More resources are needed given that most car manufacturers have anticipated the objectives of the conversion to electric in 2030 with an acceleration of the restructuring processes.
We must immediately prepare the operating procedures to unload the allocated funds on the ground, as FIM-CISL proposed, as other countries have done, to set up a special technical committee to immediately direct the resources necessary for the re-industrialization of the sector.
The resources for reindustrialisation must be usable immediately to compensate for the losses caused by the change of engines, reducing the distance of the value chain, with a production and supply policy, of all the components that will represent the car of the future: from semiconductors, from batteries, to the components necessary for electric motorization, for autonomous driving, for digitalization and connectivity.
On semiconductors we will continue to have important difficulties also in 2023, if we had already started in 2020 in Italy with an industrial settlement plan or to strengthen the semiconductor production capacity, today we would most likely already be in the completion phase. The government must be aware that without a plan for industrial transition that can be activated immediately, the risk of dismissal and industrial desertification becomes certainty.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/stellantis-come-vanno-le-produzioni-negli-stabilimenti-di-atessa-cassino-melfi-modena-e-pomigliano/ on Mon, 17 Oct 2022 05:14:11 +0000.