Wednesday, July 09, 2008
Fiat announces car production cuts
Plants will temporarily close due to falling demand
Fiat has told unions that it will be shutting four of its five plants in Italy for one week per month from September to November due to falling car sales, the Financial Times has reported.
While the carmaker did not say how many workers would be affected, there have been reports saying thousands could be laid off temporarily on reduced salaries.
Fiat has already announced a four-day closure at the end of July at its plant in Melfi and last week Fiat chief Sergio Marchionne described a “perfect storm” of tough market conditions hurting the brand.
Fiat registered a 16.5 per cent drop in car sales in June.
Marchionne also said the brand would be raising its car prices to account for the skyrocketing costs of raw materials.
DATED: 09.07.08
FEED: MT
Fiat has told unions that it will be shutting four of its five plants in Italy for one week per month from September to November due to falling car sales, the Financial Times has reported.
While the carmaker did not say how many workers would be affected, there have been reports saying thousands could be laid off temporarily on reduced salaries.
Fiat has already announced a four-day closure at the end of July at its plant in Melfi and last week Fiat chief Sergio Marchionne described a “perfect storm” of tough market conditions hurting the brand.
Fiat registered a 16.5 per cent drop in car sales in June.
Marchionne also said the brand would be raising its car prices to account for the skyrocketing costs of raw materials.
DATED: 09.07.08
FEED: MT
