Production at Fiat’s Pomigliano site in Italy will be suspended from Oct. 16 to 27 due to weak demand. The Italian carmaker has confirmed the suspension of work at the site that builds the Fiat Panda minicar. Giuseppe Terracciano, secretary general for the Fim-Cisl union in Naples, remarked that the suspension is needed due to the slowdown in the market this year.
Fiat usually employs the state-backed temporary layoff schemes to prevent producing too much vehicles by sending workers home when there is a low demand for vehicles in the market.
Around 1,950 of 4,500 workers at Pomigliano have been on solidarity contracts since March – which means they work and paid less in exchange for retaining their jobs.
Fiat has seen excessive capacity issues its sites in Italy for years, no thanks to a six-year sales slump that struck the European market, which is only seeing some recovery now.
Despite the excessive capacity, Fiat still vowed to reinstate all workers now placed on the different layoff schemes as it moves on to implementing its five-year investment plan. The plan seeks increase the group’s global sales by 60 percent to 7 million cars and hike net profit five-fold by 2018.