What happens in the Stellantis factories. Fim-Cisl report
The point on the performance of the Stellantis group in Italy. The speech by Ferdinando Uliano, National Secretary of the Fim-Cisl
Stellantis production is down for the fourth year, a third of vehicles evaporated since 2017. In 2021, semiconductors close production at -6.1% compared to 2020 and -17.7% compared to 2019. The volumes of the electric 500 and Jeep Compass grow in the car.
The Government convenes the table of Stellantis and the automotive sector to safeguard the industrial and employment assets of the sector.
Production situation Stellantis Italy 2021
The production data in the first nine months of 2021 marked a growth of + 14.2% compared to 2020, but the continuous production stoppages due to the shortage of semiconductors marked, at the end of the year, a reduction of -6.1% compared to 2020, the year characterized by the production block of the lockdown.
Specifically, in 2021, 673,574 units were produced, including cars and commercial vans, compared to 717,636 in 2020. The production of cars, equal to 408,526 marks a -11.3%, while that relating to commercial vehicles marks a very slight increase of 3 , 1%.
If we compare the production data to the pre-covid period and therefore to 2019, the situation is more negative with an overall -17.7%, with cars at -22.3% and commercial vehicles at -9.6%, the latter for the first time in negative in the last 12 years. The effect is largely attributable to the stop in production caused by the lack of semiconductors, a situation that will also affect 2022.
The suffering encountered in the first 6 months of 2021 worsened in the last semester causing numerous production blocks. In conclusion, production figures have been decreasing since 2017. In the four-year period, 35% of total production was lost from 1,035,454 to 673,475, 45% in cars alone (from 743,454 to 408,526).
The only productions that have not undergone significant stops in the last half of 2021 are the production of the 500e, which cannot stop due to the constraints on Co2, to avoid the very high penalties, and the new MC20 which began production in the first half of the year. 2021.
Polo Torinese, the Maserati factory in Modena and Sevel are the only production companies that manage to have a production exceeding the year of the pandemic. Compared to the pre-pandemic period, however, it is only Mirafiori that manages to exceed the levels of 2019, thanks to the launch of the 500e.
The market situation already suffering from the pandemic situation, with the blocks caused by the shortage of semiconductors, has reduced the positive effect of the latest incentives prepared by the Italian government in 2021. The issue of supplies of raw materials, semiconductors and approaching the labor chain is a geopolitical problem that the government of our country must tackle in a strategic way. Our concerns concern the workers who are heavily affected in terms of income by this situation, in addition to the negative repercussions that are cascading throughout the sector.
Investment situation of the FCA Italy 2019-2021 industrial plan
The 5.5 billion investments envisaged in FCA's old industrial plan for the period 2019-2021 are being completed. In March 2021, production of the Maserati MC20 in Modena started at full capacity. After a further postponement largely due to the semiconductor problem and the protection of the commercial launch of the new cars, in the first half of 2022 the production increases of the Grecale SUV at the Cassino plant and the Alfa Romeo Tonale SUV (also in the two hybrid versions) in Pomigliano d'Arco, while the two Maserati GT and GC will be produced in the Turin Polo starting from September 2022.
Situation in the factories of the final productions
Turin Production Center
The production volumes measured in 2021 amounted to 77,267 units compared to the 36,702 recorded in 2020 (+ 110%). The greatest weight of the growth was determined by the production of the 500 bev which, starting in October 2020, in 2021 stood at 53,819 units. 70% of volumes are represented by 500 bev, the remaining 30%, equal to 23,448, is represented by the Maserati Levante, Ghibli and Quattroporte productions. Maserati productions exceeded the volumes made in 2020 and 2019. In particular, the Levante reached 16,228 units, compared to 11,018 units in 2020 and 12,210 units in 2019. Also the two Maserati, Ghibli and Quattroporte, produced in Grugliasco, with the 7,220 units produced in 2021 exceeded by measure the 6,676 units in 2020 and 6,900 in 2019. A first positive sign in the Maserati world even if production still stands at – 57% compared to the results achieved in 2017. Both Levante production that that of Ghibli and Quattroporte have been on a shift for some time, and in the course of 2021 the use of social safety nets was resorted to.
With the trade union agreement reached on October 26, 2021, we brought forward part of Stellantis' industrial plan for the Turin hub. The consolidation from January 2022 of Maserati productions in Mirafiori, accompanied by a precise commitment to guarantee the investment starting from 2024 of Maserati's future Folgore electric platform, will allow for the modernization of all Maserati cars with the new engines, giving perspective to the production site and creating the conditions of better certainty on the employment aspects. The investments envisaged by the old FCA plan will be completed and the consequent start of production from the second half of the year, on a new electrified platform, of the two new Maserati Gran Turismo and Gran Cabrio, the full-electric version of which is scheduled for 2023, to which the will add from 2024 the replacement of the E / E + sedan models (current segment of Ghibli and Quattroporte). The agreement provides that the new production line of Maserati models and that of the 500e will maintain the current production capacity present in the Turin sites. From 10 January the 500e line will start in two shifts, doubling the current production, while the Maserati productions, including those of Ghibli and Quattroporte, will start on 17 January.
On the other hand, we are very concerned about the consequences that will arise following the government's decision not to provide, in the Stability Law, for incentives aimed at facilitating sustainable mobility. The lack of incentives for electric and hybrid engines will have a negative impact on production. If the estimates circulated in the last few days of a 50% reduction in volumes materialize, we could have a negative impact on the 500e where the doubling of shifts is starting.
Maserati Modena
With the start of production of Maserati's super sports car, the new MC20, from the second quarter of 2021, saturated the production capacity of the Modena Plant and the use of social safety nets was eliminated. The volumes of MC20 are constantly growing and have reached 600 units, equal to 70% of the Plant's production. The expectation of growing both in volumes and in employment, in particular in direct production. The market has already responded well with the acquisition of an important order backlog which gives ample coverage to the production capacity of the Modena plant. The investments that involved all stages of the site's production (from the body in the area, to the engine, up to the painting) have improved the levels of quality and efficiency.
In addition to the approximately 200 direct production sites in Modena, approximately 1,000 engineers are employed in the design and development activities that are at the service of all the Stellantis realities, for us it is essential that this important reality linked to research and design has its continuity and development, and does not undergo downsizing.
Cassino
Production in Cassino in 2021 amounted to 43,753 units, with 28,705 units produced, the Stelvio SUV represents two thirds of the overall production of the site. The volume loss in 2021 has continuously worsened over the months, reaching -18% compared to the 2020 pandemic. If we take the pre-covid period as a reference, the loss further increases reaching -26%. The semiconductors deal a further blow to the already strongly negative situation determined with the lockdown in 2020, moreover with the production exit in 2020 of the third Alfa Romeo, the Giulietta, the production figure could only worsen further this year. . The negative decline in production volumes at the Cassino plant has continued since 2017, with a production loss of over 91,000 units (-68%).
In the course of 2021 social safety nets were continuously used to secure employment, which in the last year and a half has reduced by over 1,000 workers, going from about 4,300 to 3,289. The total production stops were a total of 92 days. In the remaining working days, however, it marched at reduced speed with about 500 workers in CIG every day. The productions of Giulia and Stelvio have been carried out for some time on a single central shift.
Also in the last quarter about a hundred of the so-called pre-series of the new Maserati Grecale suv were produced. The wait is for the production launch which, after the problems on semiconductors, has slipped from the end of 2021 to the second quarter of 2022. The hope is that in 2022 the strongly negative trend will be reversed with the start of production of the new SUV. even if our concern is that this new production will not be enough to eliminate the use of social safety nets, despite the strong downsizing of employment that the site has undergone.
With the Maserati Grecale, the premium platform with hybrid engine will also arrive in Cassino, which will subsequently allow it to be developed on the other two Alfa Romeo models, up to the creation of a full electric version in the future. For FIM-CISL, Stellantis' future industrial plan will have to provide for further investments for the Cassino plant in new multi-brand products in the premium sector, to make the most of its production capacities, which are currently at less than 20%. We are also waiting for clear and certain answers on future allocations, promised by the CEO of Alfa Romeo Philippe Imparato of "a yearly launch of the Alfa Romeo, DS and Lancia brands until 2026".
Melfi
The heaviest drop in terms of production volumes is that of Melfi, with -28.8% compared to 2020 (- 66,202 units) and a greater fall if compared to the pre-covid 2019 period with a loss of over 1/3 of production . The blockage caused by semiconductors creates a greater thud in the most productive plants, after all Melfi represented for many years the plant that alone produced half of FCA's cars. Today the Lucanian plant continues to represent a significant 40% of the total number of cars produced by Stellantis in our country, but the losses are felt with a strong increase in the use of social safety nets.
The downturn in the Italian and European market and the production stoppages generated by the lack of semiconductors weighed heavily on the results of the plant. After all, the Lucanian plant worked half of the theoretical working days foreseen in the third quarter and from September there were more collective stop days than working days.
In detail, the production of the Jeep Compass, which started in May 2020, reached 44,224 units (+ 47%) thanks to the first full year of production. While the two small SUVs, the Jeep Renegade and the Fiat 500x, amounted to 119,422 with a reduction of 80,478 units equal to -40%. Such low numbers in Melfi were seen only before the 2015 production climb, with the launch of Renegade and 500x. Since then, more than half of the cars produced have been lost (-58%), going from 390,000 to 163,646 this year.
The reorganization that involved the production area, with the strengthening of a production line, compared to the previous two, the creation of a specific area for the assembly of batteries, the production of new components in the Press and Plastic units and a intervention in the bodywork area, maintains a production capacity of around 400,000, but the situation on semiconductors is so serious that the repercussions on production are very serious.
The reorganization agreement also defined professional training interventions, incentive methods with voluntary membership to avoid redundancies and layoffs, which saw around 400 workers join, thus bringing the employed to 6,800 units.
It is necessary that in the coming weeks the Stellantis table is convened at the Ministry of Economic Development, in order to ratify and guarantee the commitments made with the trade union agreements regarding the future prospects of the production site, with the assignment to the plant of the future Bev STLA Medium platform, on which four new fully electric and multi-brand cars will be developed from 2024, alongside the current productions.
Fca Pomigliano
Production in 2021 reached 123,000 units, down even compared to the 140,478 units produced in 2020 and 38% lower than the 198,647 relating to the pre-covid period of 2019. Semiconductors also hit more than Covid on the Panda productions. Together with Melfi it is the plant that has suffered the greatest losses in absolute value.
To date, the Pomigliano plant employs 4,281 workers, about 200 fewer as a result of voluntary exits. On average, about 900 people have used the Cig first and now the CDS since December. While there are another 101 days of total collective shutdown following the problem largely generated by semiconductors.
The microchip problems have postponed the start of production of the new Alfa Romeo Tonale SUV, Stellantis has confirmed that the start of production of the new Alfa Romeo Tonale SUV will take place from March 2022 and the sale on the market in June.
With the start of production of the new Alfa Romeo SUV and the production of the Panda, there could be the conditions for a strong reduction in social safety nets only if the semiconductor problem is resolved in the second half of 2022.
Pomigliano's main problem now is to have guarantees for the future. Until when is production of the current Panda model planned in the Campania plant? If the production of the Panda will arrive until 2023 or 2024, it is necessary to have certain answers in the short term which other model will be destined for Pomigliano to saturate the production capacity. By 1 March 2022, the day of presentation of the Business Plan, Stellantis must assign the future model to the Campania plant. For the FIM-CISL this is an indispensable issue, a further period of use of the social safety nets after the launch of the new Tonale SUV would no longer be socially sustainable.
Sevel – Atessa
Production in commercial vehicles in 2021 reaches 265,048 units, with a positive increase of + 3.1% compared to 2020. But for the Sevel plant this is not good news. From the month of May 2021, 18 shifts had started and this had allowed a strong push in volumes so as to hypothesize to exceed the threshold of 300,000 commercial vehicles. Unfortunately this objective, which was concretely within reach, will not be achieved due to the days of production downtime for semiconductors, which in 2021 were 20, equal to 60 shifts, to which was added with a production stop for the end of year holidays. from 24th December to 9th January. All of this negatively impacted the site's employment levels. The company unilaterally proceeded to bring the plant to 15 shifts with an employment repercussion of over 1000 workers: around 600 are the temporary workers to whom the company does not interrupt the work to which we must add the intragroup redundancies who were away . We did not agree with the choice that led to the deadweight loss of the jobs of many young people who joined the company. One could easily intervene using shock absorbers while maintaining employment, given that the downsizing of order volumes is a temporary problem caused by semiconductor supplies. It is essential to identify a positive solution both for the temporary workers still in force in the company (about 280), and for those whose contract was terminated during 2021.
For the FIM-CISL it is necessary to intervene contractually also with a generational change, favoring with direct hiring paths the workers on permanent contracts, who have been working continuously and without interruptions for some time in Sevel. At the same time it is necessary to identify a series of protection tools, starting with the right of way for workers who have lost their jobs, thus binding the company to future hires.
The Ducato Elettrico has entered production, we think it is equally important that the hydrogen type is also developed for the future for all commercial vehicles produced in Val di Sangro. Given the lack of distribution centers, we have urged the government to build a network for the distribution of hydrogen. In the next industrial plan of Stellantis it is necessary to define the investments necessary to improve the structure and the plants and above all it is essential to verify with constancy and attention that the internal balances of the Stellantis group, with the Polish plant, do not determine negative impacts for the future of Sevel. Specifically, we believe that the Government must also undertake the same commitment.
- In the coming weeks, the Ministry of Economic Development must convene the trade unions and the Stellantis management, in advance of the presentation of the Group's business plan scheduled for 1 March 2022.
- The commitments already made with the agreements signed at the company level must be ratified and guaranteed in the ministerial office. At the same time, a discussion must be opened with the aim of ensuring a positive industrial and employment perspective for all plants and structures / entities.
- The government must play a leading role, decisive for the fate of the most important industry in our country. In the coming months we need to define a specific strategy, with the allocation of a Fund for the sector to govern the industrial and social transition. Incentives are needed for sustainable mobility.
Since April 2021, at the Ministry of Economic Development, at our request, two important discussion tables have been set up: one for the Stellantis group and the other for the automotive sector. We believe that the role that the Italian government can play is important both in terms of guarantees for industry and employment, but above all for the role it can actively assume for the choices of industrial policy and social sustainability strictly related to the ecological transition, motorization, connectivity, autonomous driving, which are already characterizing the present and which represent the future, both for the automotive sector and for the largest manufacturer in our country and related industries.
The Stellantis Table and the Group's future business plan
CEO Carlos Tavares announced that on March 1, 2022, the business plan currently being defined will be completed and illustrated. Before that date it is necessary for the Government to convene the trade unions and the company in the coming weeks, to take stock of the overall situation of the Group. It is necessary to ensure the positive progress of the commitments already made with the agreements signed at decentralized level or communicated as anticipations of the Industrial Plan: Melfi, Polo Torinese, Central Bodies, the Gigafactory and the engines of all commercial vehicles in Pratola Serra. At the same time, an all-out comparison must be opened, for all the establishments and all the service structures / bodies for which we have not yet received positive responses or for which uncertainties remain, with the aim of obtaining a perspective industrial and occupational for every reality.
The Government must then inform us on the progress of the Gigafactory project in Termoli. It is also essential to understand the details of this important investment from Stellantis: from the employment impacts, to the management of the industrial transition, to social interventions both in terms of shock absorbers and those related to the change of professional skills.
It is necessary to understand the strategies with respect to the other factories that produce the internal combustion engines. The news about Pratola Serra is positive in the short term, but in any case it does not guarantee the future prospects of that site. The situation of the Cento plant is certainly the most critical, the group has not yet clarified until when the current V6 engines can be sold in the USA and what the reindustrialization project is. The conversion of the factories towards the new engines also involves the Verrone plants, the mechanics of Mirafiori and the foundries of Teksid. We have little time before the interruption of diesel and petrol engines planned in Europe in 2035. It is equally essential to ensure industrially and at an occupational level an important company such as Comau, involved in a spin-off that is not yet clear in its objectives.
For the FIM-CISL it will be essential that the comparison on the new industrial plan 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, to the relaunch of Italian brands such as AlfaRomeo, Maserati, Fiat and 500 and to further develop Jeep productions, 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 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 Government presides over and verifies with Stellantis the strategies of the group towards the related companies of our country, in order to obtain specific guarantees of an important automotive component chain.
The table of the automotive sector
From the Stellantis production data that we have processed and from the trend in registrations, the critical situation already experienced by the Italian Stellantis plants and the negative repercussions on the related industries and in the components sector are evident. There is a very high use of social safety nets to deal with the “desaturation” of the plants, aggravated by the crisis generated by the lack of semiconductors. The shortage of semiconductors will characterize a large part of 2022 and therefore it will be necessary to guarantee a "neutrality" in the calculation of Cigo's consumption. At the same time it is necessary for the Government, together with the main industrial groups, to facilitate a policy of reindustrialisation of the sector with a specific Fund, to compensate also the losses caused by the change of engines, reducing the distance of the value chain, with a policy of production and supply of all the components that will represent the car of the future: from semiconductors, batteries, to the components necessary for electric motorization, for autonomous driving, for digitalization and connectivity. The absence of an industrial transition plan will inevitably result in the loss of employment of over 60,000 workers.
After 6 months from the constitution of the sector table, the Government assigned 150 million euros to a specific fund for the car, totally insufficient resources for any industrial policy intervention and on the front of incentives for the purchase of cars, in the Law of Stability, did not allocate incentives for sustainable mobility causing negative repercussions on new production and employment. There is also a lack of specific interventions for professional training, necessary to govern the process of changing professional skills.
As FIM-CISL we believe that the trade unions and business associations must jointly elaborate and submit to the Government a series of requests necessary to prevent the industrial desertification of one of the most important industrial sectors of the economy of our country and the dramatic employment and social repercussions.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/cosa-succede-negli-stabilimenti-stellantis-report-fim-cisl/ on Tue, 04 Jan 2022 15:00:57 +0000.