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The union warns that more than 500 jobs are at risk as Stellantis switches oil suppliers in Italy

A trade union warned on Wednesday that more than 500 jobs were at risk after Stellantis, an Italian automaker, switched from Malaysia's Petronas brand to France's Total.

Stellantis did not respond to a request for comment immediately.

Petronas is the owner of the Selenia motor oil brand, an Italian supplier that was previously a part of Fiat and sold products under the name "Olio Fiat".

Stellantis, a new company created in 2021 by the merger of Fiat-Chrysler and France's PSA (maker of Peugeot and Citroen vehicles), was formed from the merger between Fiat-Chrysler and France's PSA. Also included in the group are Opel and Jeep.

The Uilm union announced in a press release that Selenia had lost its "historical" contract of supply with Stellantis, after 112 production years. The result of a competitive bid led to the change.

Uilm said that Petronas had announced the decision in a meeting held with its employees. He added that this affected the job security of 450 Fiat workers in Turin, Fiat's home town, and 70 others in Naples in southern Italy.

The union has pledged that it will use "all tools available" to protect Petronas employees and other auto suppliers, who are "under severe stress" as a result of Stellantis' decision.

The FIM-CISL union reported in January that Stellantis, Italy's only major automaker and the country's sole manufacturer, had a production level of around 475,000 cars in 2016, the lowest since 1956. Reporting by Giulio Pieovaccari, Alvise Armellini and Keith Weir.

(source: Reuters)