Fiat Says Crucial Parts Backlogged At Its Italian Supplier Will Force Production Shutdowns In Europe

  @MalikFromLA on June 12 2013 4:30 PM
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A man walks past a Fiat logo at a showroom in Noida, on the outskirts of New Delhi, April 3, 2013. Reuters / Mansi Thapliyal

Auto maker Fiat SpA (BIT:F) and heavy equipment maker Fiat Industrial SpA (BIT:FI) announced Wednesday that they will temporarily cease vehicle production at some of their plants in Europe over the coming days due to delays in part delivery from a supplier.

The Italian car company said that 5,500 or more vehicles can't be assembled as a result of missing plastic components from another Italian partner called Gruppo Selmat. In its statement, Fiat said that Selmat faced an ''unmanageable" backlog.

Selmat is based in Turin and makes plastic parts for interior components including air vents, door panels and dashboards. During the prior week Fiat faced production delays at its plants in Serbia, Poland, Italy and Spain due to a shortage of parts and had also halted production in the prior month following a dispute with Selmat.

Now Fiat is determining exactly at which plants to stop production and for how long.

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