MILAN — Stellantis is finding out a plan that may contain the closure of certainly one of two manufacturing strains at its Melfi plant in southern Italy, the pinnacle of the FIM CISL union mentioned.

The Jeep Renegade and Compass, and the Fiat 500X SUVs, are constructed at Melfi, which is taken into account essentially the most environment friendly Stellantis plant in Italy.

Closing a Melfi line might mark a primary step by CEO Carlos Tavares to deal with extra capability in Italy.

The carmaker’s manufacturing is beneath scrutiny within the nation for costing greater than elsewhere, as Stellantis seeks greater than 5 billion euros ($5.9 billion) a yr in financial savings.

FIM CISL’s Ferdinando Uliano mentioned the plan was being assessed, however Stellantis had not taken any determination on it, and the union had but to obtain official affirmation that such mission was being thought-about.

Tavares has mentioned that production costs at factories in Italy are up to four times more than within the automaker’s crops in France and Spain.

Tavares had dedicated to not lower jobs or shut crops following the creation of the corporate from the merger of Fiat Chrysler and Peugeot-maker PSA earlier this yr.

“We’re very apprehensive,” Uliano mentioned on Thursday. “After getting lowered manufacturing capability at one website, it’s totally troublesome to achieve it again”.

Stellantis was not instantly accessible for remark.