Fiat temporarily lays off 48,000 workers, idles 14 Italian plants
12/16/2008, 3:09 PM
By Andrew Ganz
Italian automaker Fiat announced today that it is giving more than half of its workers extended holidays that will see 14 of its 20 home country factories shut down for two or four-week periods until mid-January. Fiat will temporarily lay off 48,000 of its 80,000 Italian workers in order to cope with a drastic drop off in new car demand across the globe.
The affected plants include the Mirafiori facility (pictured) that builds the Grande Punto and Alfa Romeo MiTo, which will shut down for two weeks, and the Pomigliano d’Arco facility that builds Alfa Romeo 159s 147s and GTs, which will shut down for a month and the Termini Imerese facility that builds the Lancia Ypsilon will pause for a total of three weeks.
Part of the Fiat workers’ salaries will be paid by a government-administered fund, the “cassa integrazione,” which pays a portion of the worker’s salaries, the automaker said in a release. The plant idling doesn’t affect the automaker’s agricultural, construction and industrial vehicles – just passenger cars.
Fiat is struggling with the worldwide downturn in new car sales – Fiat’s new car sales dropped 25 percent to 71,000 in November over the year before, though the automaker says its European market share has actually improved from 8.2 to 8.3 percent this year.
Fiat employs 185,000 workers across the globe in 178 plants.
12/16, 3:38 PM
posted by:
ihustle
Ohhh so i guess its not just the american auto industry. I love how the news is trying to make american auto makers the posterchild and reason behind an economic collapse. What people are forgetting is the 700+ billion given to aig because they were giving loans to people who shouldnt of had them. At least the auto industry said they would repay the loan, or give stock options. No such words were uttered by AIG. So why does the american auto industry get slammed? 15 billion to save 2,500,000 jobs or give a risky lender 700 billion with no promise of repayment. Forclosed mortgages are to blame for a struggling economy. If people dont have money, how can they buy cars? With the F150 still best selling “Vehicle” in the united states, whats this talk about americans not producing fuel economy? Last i checked the F-150 got 16mpg. Looks like there looking for a scape goat.
12/16, 3:39 PM
posted by:
Borat
Should GM closed itself, since nobody buys its vehicles? Nah, taxpayers will pick the tab.
12/16, 3:41 PM
posted by:
Borat
I don’t want to pay any billions to bums who cant screw cars right! Or bums who cant manage, market, sell right! Go to the banks, they are designed for borrowing, not taxpayers.
12/16, 3:42 PM
posted by:
AnonymousCoward
No, it’s not only the US auto industry. But for some reason, those brands not owned by the Big 2/15 are not on the verge of bankruptcy.
12/16, 3:53 PM
posted by:
yarddog82abn
@ihustle… you are so right…
it’s the Domestic hater that pointing the finger, Toyota halts production and the Toyo. fan boys say it’s nothing, to worry about, I guess they the memo’s form the corporate meetings or something…
It’s not just the U.S. that is in a bind, the World economy for the most part is bad, look at the U.K. they are also turning big unemployment number, the Japan stock market is also not looking so good, mostly there international brands, and the Swiss, German, French and now the Spanish are having to bail-out there domestic auto makers… it truly looks like Santa is not coming to town thesis Holidays….
12/16, 4:07 PM
posted by:
hangonbig3
The car companys that are in trouble are the ones that did not manage thier debts properly and did not have a sound business plan….As my name suggests I am a fan of the Big Three but there is a time to let go and reorganize. This should not include the taxpayer. So…letgobigthree.