Italy: Two-month shut-down at Alfa Romeo's Pomigliano d'Arco plant set to end
Wednesday, February 27, 2008, AutomotiveWorld.com
Fiat Group's Pomigliano d'Arco facility near Naples will open on 3 March following a refit-related shutdown that started on 7 January. The plant produces Alfa Romeo's 147, 159, 159 Sportwagon and GT models.
Prior to the closure, Fiat had expected to incur a charge of €40m (US$60.17m) from the shutdown. The closure has had a significantly negative impact on Alfa Romeo sales across Europe, with sales down 43% in January.
Stemming from the expected reduction in lost man-hours, the OEM expects desaturation problems in the near future. To address this, Fiat plans to transfer painting and assembly operations for a portion of Fiat Bravo production from its Cassino plant.
To balance output at Cassino, production of the Lancia Delta, which is about to start, will be stepped up, industry portal Italiaspeed.com says. The Group also plans to set up a logistics centre to cater to the Pomigliano plant, aimed at streamlining restocking of components for the production lines.
According to Italiaspeed.com, Fiat will realign the Pomigliano and Cassino plants to constitute a single manufacturing hub. Factors that encouraged this include the proximity of the two facilitiess, shared technological and plant characteristics, and an integrated and common supplier base. The move is aimed at realising performance improvements through manufacturing rationalisation and operational benefits.
In December, Fiat Group announced plans to invest €70m to revamp the Pomigliano d'Arco facility. The company had said that it would spread this investment over 2008 and possibly into the first quarter of 2009.
The facility opened in the early 1970s to build the Alfasud, a revolutionary small car renowned for its excellent handling and innovative 'boxer' engines. The plant, however, was bedevilled by quality and union unrest problems for many years and was renamed after Fiat bought the brand in the 1980s.
Published on Wednesday, February 27, 2008
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