Fiat plans to shut down its Turin headquarters for eight working days this month and in July as part of its cost-saving measures. The closure will take effect on June 14-15, 20-21 and another four days in July. Sources told Automotive News Europe that the temporary shutdown will allow the carmaker to save around EUR1 million daily, affecting around 5,400 employees.
However, the employees are bound to receive about 80 percent of their normal pay to remain at home, funded by the Italian government’s Cassa Integrazione temporary layoff program. The Italian carmaker will also close its head office in August as usual for the summer vacation. The company’s headquarters houses Fiat's styling center, engineering and manufacturing operations, sales and marketing, purchasing and administrative offices.
The temporary closure of Fiat’s head office is part of its efforts to cut losses in Europe, Asia and Middle East region, which posted a EUR207 million trading loss in the first quarter of 2012, compared with EUR107 million in trading loss in the same period in 2011.
The trend is expected to result in a 2012 annual result worse than the EUR500 million loss in 2011. The company, however, posted EUR866 million in trading profit for the first quarter of 2012 due to the strong performance of its Chrysler unit and Fiat's Brazilian operations.