Chip shortage disrupts Fiat production in Italy and may last to December

A shortage of electronic components is disrupting Fiat production in Italy, with the problems potentially continuing through December, Stellantis said on Monday, Reuters reported.

The missing component is used in an engine control unit, the computer that manages a car's engine. Stellantis, which owns 14 brands including Fiat, Peugeot and Jeep, has not identified the supplier responsible for the shortage.

The disruption has already affected production of several Fiat models and weighed on October sales. The hardest hit is the Fiat Pandina, an updated version of the Panda and one of the brand's best-selling cars.

Further production stoppages are now possible in November and December. They could affect the Pomigliano plant near Naples, where the Pandina is built, and the Mirafiori factory in Turin, which produces the Fiat 500.

The engine plant in Termoli, where Stellantis assembles the N3 GSE engine used in both models, could also face disruption, according to Reuters.

Mirafiori is already dealing with a separate production halt. The Turin factory has been closed for three weeks since mid-October because of a shortage of another component.

Unions said weak demand for the Fiat 500 had also contributed to the decision to suspend production.

Stellantis said it and Fiat were “working with the highest priority to identify alternative solutions” and were gradually bringing operations back to normal.

The latest disruption comes as European carmakers are still dealing with wider supply problems in the semiconductor industry.

Those problems intensified after the Dutch government took control of chipmaker Nexperia in late 2025, prompting China to restrict exports from the company's Chinese plants. Stellantis has not said whether its current shortage is connected to that dispute.

The Nexperia dispute raised concerns across the automotive industry last year. Volkswagen and other manufacturers warned that production could be affected as their stocks of the company's chips dwindled.

Semiconductor supply has also become a concern in other parts of the technology industry, including optical components targeted by a proposed US ban on Chinese transceivers.

For Stellantis, the shortage adds to the difficulties facing its Italian operations. Trade unions have repeatedly warned about declining production at the group's factories in the country.

Also, the company has not disclosed how many vehicles it expects to lose as a result of the latest disruption.