Fiat to shut down Pomigliano plant for 2 weeks due to weak demand

Article by Anita Panait, on August 31, 2012

Fiat will stop production at its Pomigliano site in Italy for two weeks in September and October due to weak demand for cars. According to a Fiat spokesman, the carmaker’s workers at its Pomigliano plant, which builds the Panda minicar, will be placed under a temporary layoff scheme from September 24 to 28, 2012 and from October 1 to 5, 2012.

The Italian carmaker has already lengthened the plant’s summer break by two weeks to adjust production output to dwindling demand. Fiat chief executive Sergio Marchionne has promised to provide an update on the carmaker’s investment plans on October 30, 2012, but its unions have expressed concerns that the Italian company could be getting ready to postpone investment or even close a plant. 

Marchionne announced on July 3, 2012 that Fiat would shut down one of its plants, which is similar to a move it made last year when it closed its Sicily plant, unless it could formulate an economically viable plan to use excess capacity to produce cars for North America.

Fiat, just like other volume car manufacturers, is losing money in Europe due to the current economic crisis in the continent. According to data from the industry organization ACEA, Fiat Group posted a 16.5 percent drop in vehicle sales in EU and EFTA countries for the first half of 2012 to 456,191 units.

Topics: fiat, plant

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