Fiat announced earlier on Wednesday that following the Pomigliano plant's scheduled summer shutdown, the company will keep the factory idle for an additional two weeks. The extended shutdown will occur from August 20 to the 31st.
"Until now, such measures were not necessary at the Pomigliano plant, where production levels have actually been increasing since the beginning of the year," the Italian automaker said in a statement. "However, the current situation has made it necessary to reduce production at the plant to avoid an unnecessary and costly build up of excess inventory."
The Pomigliano plant, which produces the Fiat Panda, has about 2,150 employees.
New car sales fell 6.3 percent in Europe during the first-half of 2012, with the backwards slide even worse in Fiat's home market. New car registrations declined 19.7 percent during the first six months in Italy, capped by a 24.4 percent decrease in June. As a result of those worsening figures, Fiat says "the market slump is showing no signs of a reversal."
