Fiat Chrysler wins waiver to retrieve parts from virus-hit supplier
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Fiat Chrysler Automobiles obtained permission to retrieve critical parts from a supplier in an area in northern Italy locked down following the country’s coronavirus outbreak.
Three of FCA’s car plants in Italy and a joint venture van factory with PSA Group were threatened with production stops because MTA Advanced Automotive Solutions could not deliver essential electronics parts.
MTA’s headquarters and main production center in Codogno, 60 km (37 miles) southeast of Milan, has been closed since Monday after the town became the center of a coronavirus outbreak responsible for 12 deaths and more than 370 confirmed cases of the virus.
Italian authorities ordered factories in Codogno and nine nearby towns to suspend non-essential activities to help prevent the spread of the virus. People are not allowed to enter or leave the towns.
MTA said FCA’s plants in Mirafiori, Cassino and Melfi and its Sevel joint venture with PSA would run out of MTA parts without regular parts deliveries. Renault, BMW, PSA Group and Jaguar Land Rover could also be hit, the supplier said.
MTA CEO Antonio Falchetti said FCA obtained permission to enter the locked-down area because of the threat to the automaker’s production. He said FCA sent a truck from an outside contractor to collect the parts after the Italian government’s local representative signed a waiver.
FCA’s only plant in Europe to close following the virus outbreak is in Serbia where Fiat 500L was halted due to a shortage of audio parts from China. The plant is scheduled to restart production on Thursday.
