Fiat warns Italy’s automotive sector could lose 60,000 jobs this year
01/29/2009, 1:46 PM
By Drew Johnson
Fiat’s recent alliance with Chrysler promises to give the Italian automaker a new foothold in the U.S. market, but trouble looks to be brewing in the company’s home market. Fiat and its union say that 60,000 jobs could be lost in Italy’s auto sector if the government doesn’t intervene.
Like the rest of the global auto market, Italy has been hit hard by a collapsing economy and an ever-tightening credit market. As such, the government will begin talks with the auto sector this week, according to The Detroit News.
Fiat’s profits tumbled 70 percent in the fourth quarter of 2008, with 2009 not looking any better. The Italian automaker expects demand to drop another 20 percent this year. Fiat’s deal with Chrysler should add some demand – as it will give Fiat access to the largest auto market in the world – but it remains to be seen if it will be enough to keep the automaker’s head above water without help from the Italian government.
01/29, 1:48 PM
posted by:
Zcarsales
Yeah, this looks like a good move on Chrysler’s part.
01/29, 1:56 PM
posted by:
E90
I don’t know why every company thinks if you put 2 bad companys together it would make one good company. Doesn’t work that way!
01/29, 2:09 PM
posted by:
yarddog82abn
I wonder if Fiat is “CRYING WOLF”, so that everyone starts to run around like chicken’s with their heads cut off.
That “we Fiat are O.K.”, “we are securing our future by working with other auto makers”, “so buy Fiat”
That’s just the way I see it, hay I’m just saying…
01/29, 2:52 PM
posted by:
Borat
Yes in forth quarter FIAT lost its butt, but in the third, second and first it was the most profitable car company in Europe. It had the highest sales figures. This could be a reason why FIAT can contemplate takeover of ChryCo – they have cash in the bank from operations, not from mortgaging their pony emblem or government donation.
Does anyone knows today of a company that plans to make money in any industry this year? Next? We all maybe looking at soup kitchen in a few months.
01/29, 3:14 PM
posted by:
yarddog82abn
@ Borat, are we talking about, Biff Stew or Cup-O-Noodles, or boiled water with some salt and a onion?
If it’s Cup-O-Noodles, I’ll take a cup of the shrimp with hot souse.
01/29, 3:26 PM
posted by:
johnnycanuck
Does this mean we could soon see a reduction in price for a good bowl of minestrone?
01/29, 3:31 PM
posted by:
Zcarsales
Then we’ll have news stories on soup price gouging.
01/29, 3:36 PM
posted by:
bolex
E90, Chrysler and Fiat sharing parts still makes sense to me. This isnt like GM and Chrysler merger where everything would cancel each other out…and it isnt like the Mercedes take over where Mercedes refused to share parts. The way i see it the two companies have product that the other doesnt. Chrysler makes good trucks and large cars. Fiat makes small cars…regarding 60,000 layoffs, what else new? everyone is losing money, doesnt mean that Fiat is a sinking ship…
01/29, 4:22 PM
posted by:
Mutant@DCX
Chrysler is getting an audience with the vatican via fiat. Instruction from the pope to execs is; stop bashing the bishop
01/29, 4:48 PM
posted by:
mayer_ray_nagin
Crappy cars but good coffee. Viva la Lavazza! Viva la Illy!
01/29, 5:36 PM
posted by:
jayjc08
Isn’t bailout a popular word today…
01/29, 9:28 PM
posted by:
Borat
Do you have minestrone on the left side of the continent? I trust I can get good one in Montreal and Toronto, not so much in Vancouver.
01/30, 12:40 PM
posted by:
strongbad
Like E90 said, how do two companies who have dying market shares and crappy cars combine and somehow come up with greater market share and greater cars? FIAT will have access to the largest market in the world – which just so happens to not be buying any cars? It is going to be quite some time, years, before America is back on its feet and buying lots of cars. By then FIAT and Chrysler will have layed off everyone and be gone.
And who even knows about this ‘Employee Pricing Plus’ for Chrysler? I have seen no advertising, no signage on the dealerships, even the website has it hidden. And if you use the ‘build it’ option, you don’t see the employee price. GM Red Tag was much better implemented, although I haven’t seen a single GM sold off the 4 lots I pass everyday.