Fiat is planning to lay off about 1,500 workers at its Tychy, Poland plant, which has a total of 5,600 workers. Fiat said that the plant’s output won’t reach 350,000 cars this year and will fall to lower than 300,000 in 2013, compared to more than 600,000 cars in 2009. Fiat said that the layoffs are caused by the declining auto sales in Europe.
The production of the Panda (the best-selling minicar in Europe) is to be moved from the Tychy plant in southern Poland to Fiat’s factory in Pomigliano, near Naples, Italy. Output of the old-generation Panda will halt at the end of December. However, Tychy will still produce the build the Fiat 500, Ford Ka and Lancia Ypsilon.
Last Friday, a spokesman for Fiat Auto Poland said that we will know how many jobs will be lost after talks with trade unions are concluded in the first half of January. Fiat Auto Poland is the largest car manufacturer in the country.
Fiat makes the announcement amid the sudden decline in Poland’s economy. In the third quarter, the economic growth slowed to 1.4 percent of gross domestic product, while the country's unemployment rate is seen to have increased to 12.9 percent at the end of November from 12.5 percent in the previous month.