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Fiat European Production Faces Delays on Dispute With Supplier

May 14 (Bloomberg) -- Fiat SpA and Fiat Industrial SpA are facing delays producing vehicles in Europe after a supplier stopped delivering plastic components used in Maserati sedans, 500 subcompacts and Iveco trucks.

Fiat Industrial’s Iveco plant in Spain and Fiat’s Maserati plant near Turin have been stopped for at least four days because of the halt in supplies from Selmat Automotive SpA, said a Fiat representative. The Iveco plant isn’t operating today while the Maserati factory is partially open, he said.

The Italian carmaker’s factories in Poland, where Fiat builds its iconic subcompact 500, and Serbia, where it produces the roomier 500L, have faced delays in production this week and last week, the spokesman said.

Fiat, which controls Chrysler Group LLC, is boosting production of upscale models in Europe, including the $130,000 Maserati Quattroporte, as it targets to end losses in the region by 2016. Fiat’s European business had a loss of more than 700 million euros ($908 million) last year.

“Fiat is facing serious damages” because of the components shortage with “thousands of workers” affected, the Italian carmaker said yesterday in a statement.

Selmat Chief Executive Officer Enzo Maccherrone said the company informed Fiat one month ago that it was going to stop production from April 29 to May 2 and that it’s delivering its car parts normally again now. Selmat supplies Fiat and Fiat Industrial with 7,000 kinds of plastic products.

“Fiat is making all this noise just because they wanted to buy my company at a bargain price,” said Maccherrone, whose company employs 1,000 workers and had about 150 million euros in revenue last year.

Fiat had no comment on his statements.

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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