Coronavirus Hits Fiat Chrysler, Pirelli Plants in Italy
12 March 2020 - 12:36AM
Dow Jones News
By Eric Sylvers
MILAN -- Italy's coronavirus outbreak, the world's worst outside
China, has started to hit the country's big manufacturers, with
Fiat Chrysler Automobiles NV and Pirelli SpA saying they will lower
production as the epidemic advances.
Fiat Chrysler on Wednesday said it would boost efforts in its
Italian factories to contain the spread of the virus -- which as of
Tuesday had infected more than 10,000 people in Italy and killed
631 -- including intensive sanitization of work and rest areas,
changing rooms and washrooms. Daily production will be reduced as
part of the new processes, the car maker said.
"As a result of taking these actions the company will, where
necessary, make temporary closures of its plants across Italy,"
Fiat Chrysler said.
A spokesman said the company's full-year production schedule in
Italy isn't yet impacted by the plant shutdowns because it was
rescheduling planned downtime for now.
Fiat Chrysler has factories across Italy, including several in
the northwest part of the country, which has been hardest hit by
the virus.
Since last month, the company has asked most office-based
employees to work from home. It says all administrative work has
proceeded as normal.
Italy has been on a full government-imposed lockdown since
Monday, with officials introducing increasingly stringent measures
to stop the spread of the virus. Schools, universities, cinemas and
museums are closed. People are allowed to leave their homes only if
they have a demonstrable need, including going to work for jobs
that can't be done remotely.
The virus had already hit Fiat Chrysler's production elsewhere
in Europe but this is the first time it has struck Italian
plants.
The company temporarily halted production at a factory in Serbia
last month because it couldn't get parts from China. The plant,
which produces the Fiat 500L and employs more than 2,000 people, is
now operating normally.
Fiat Chrysler makes Jeep, Fiat, Maserati and Alfa Romeo branded
vehicles in Italy. The main Jeep factory is in the south where the
virus is still relatively contained, while the other three brands
are made in factories in the northwest near the company's Italian
headquarters in Turin.
The Jeep Renegade is the highest-volume model exported from
Italy to the U.S., though sales of the compact sport-utility
vehicle fell 21% in the U.S. last year. Fiat Chrysler's U.S. sales
decreased 1% in 2019, with its lucrative Ram truck brand posting
the only sales increase for the year. Fiat Chrysler imported a
total of 98,429 vehicles from Italy to the U.S. in 2019, according
to the International Trade Administration. U.S. production isn't
affected.
The coronavirus is also now hurting Italian production at
Pirelli, where an employee at the tire maker's factory in Settimo
Torinese near Turin has tested positive, the company said late
Tuesday.
Pirelli said production at the factory has been slowed so it can
function with a limited number of employees present, and that it
expects there to be a "progressive recovery" of production in the
coming days.
Available stock will be used to supply clients "with a suitable
level of service," Pirelli said.
--Nora Naughton contributed to this article.
Write to Eric Sylvers at eric.sylvers@wsj.com
(END) Dow Jones Newswires
March 11, 2020 09:21 ET (13:21 GMT)
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