MILAN — Italian-Japanese auto components maker Marelli has reached an settlement with unions to chop 400 jobs in Italy voluntarily, amid rising prices of uncooked supplies and falling gross sales resulting from provide chain issues.

“On redundancies a framework settlement was reached that guidelines out compelled layoffs,” Italian unions stated in a joint assertion after hanging a take care of the corporate.

Marelli confirmed the settlement in a separate assertion. It added that it might make investments 73 million euros ($78.67 million) this yr to strengthen manufacturing in its 15 Italian websites.

Unions stated staff could be let go solely with their “non-opposition,” and added that Marelli’s whole workforce in Italy amounted to 7,187 on the finish of 2022.

Marelli, owned by personal fairness agency KKR, was created in 2019 by combining two main suppliers — one Italian and one Japanese. KKR had agreed to purchase Japan’s Calsonic Kansei from Nissan in 2016. It then had Calsonic Kansei buy Magneti Marelli from Fiat Chrysler Cars in 2018.

Japan-based Marelli has struggled to search out its monetary footing lately, though its funds will not be public. In line with Japanese newspaper Nikkei, Marelli booked 4 straight years of losses from 2018 via 2021. It entered a court-led restructuring final yr.

Marelli ranks No. 20 on the Automotive Information Europe listing of the world’s largest suppliers, with worldwide components gross sales to automakers of $12.04 billion in 2021. 

It sells lighting, electronics and inside programs, in addition to elements for inner combustion autos similar to exhaust programs.