It was recently made public by Sergio Marchionne, the Chief Executive Officer of Fiat that they are going to cease production in one of their Italian facilities.
The production of the Lancia Ypsilon models will continue at the Termini Imerese plant, which is located in Sicily, until 2011, after which the facility will switch to manufacturing something that will not be connected to cars.
It was not divulged however what they intend to produce although they said that they were going to preserve an industrial presence at the plant.
The facility employs 1400 workers, and unions are anxious that Fiat's pledge to vend diminutives for Chrysler in the US could mean job loses and factory shutdowns in Italy.
These fears could be further fueled by the company's decision for their plant at the Termini Imerese.
After the production run of the Alfa 147 an GT stops in 2010, Fiat will debut a new platform at its Pomigliano, Naples plant and the Alfa 159 and Sport Wagon cars will continue production there past this date.
There are speculations that the European car industry will not recover prior to 2011 without an extension of government scrappage schemes.