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Fiat plans to stop car production at Italian plant
Source: Agencies |
June 19, 2009, Friday
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FIAT plans to stop car output at one Italian plant and change to a new platform at another, its CEO told government and unions at a meeting on the impact of its deal to steer Chrysler back to health.
Sergio Marchionne, who now also heads the United States car maker, told the meeting yesterday that Fiat planned to continue producing its Lancia Ypsilon cars at the Termini Imerese plant in Sicily until 2011 but would then switch production from autos, the company said.
Fiat has taken a 20 percent stake in struggling Chrysler and has promised in return it will bring its small-car technology to the US producer.
Unions in Italy have worried this could mean output and job cuts at Italian plants after the changes at Termini Imerese were outlined in Fiat's plan for its failed bid for Opel, the European arm of General Motors. Opel is in the process now of being sold to Canadian auto parts maker Magna.
Prime Minister Silvio Berlusconi said yesterday Rome was always willing to meet with Berlin on Fiat's offer for Opel.
Fiat also plans to introduce a new platform at its Pomigliano plant near Naples in southern Italy, the firm said. It will continue making Alfa 47 and GT there until 2010 and will keep output of its Alfa 159 Berlina and sport wagon there beyond that date.
Fiat will keep making cars at its other plants in Italy and hopes not to make any job reductions, Marchionne said, but that will depend on financial factors.
(Agencies)
Sergio Marchionne, who now also heads the United States car maker, told the meeting yesterday that Fiat planned to continue producing its Lancia Ypsilon cars at the Termini Imerese plant in Sicily until 2011 but would then switch production from autos, the company said.
Fiat has taken a 20 percent stake in struggling Chrysler and has promised in return it will bring its small-car technology to the US producer.
Unions in Italy have worried this could mean output and job cuts at Italian plants after the changes at Termini Imerese were outlined in Fiat's plan for its failed bid for Opel, the European arm of General Motors. Opel is in the process now of being sold to Canadian auto parts maker Magna.
Prime Minister Silvio Berlusconi said yesterday Rome was always willing to meet with Berlin on Fiat's offer for Opel.
Fiat also plans to introduce a new platform at its Pomigliano plant near Naples in southern Italy, the firm said. It will continue making Alfa 47 and GT there until 2010 and will keep output of its Alfa 159 Berlina and sport wagon there beyond that date.
Fiat will keep making cars at its other plants in Italy and hopes not to make any job reductions, Marchionne said, but that will depend on financial factors.
(Agencies)
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