Fiat SpA is to halt output of the Panda at its Pomigliano plant for two further weeks at the end of October, reflecting continuing weakness in European markets, especially those in southern Europe.
Fiat will place workers at Pomigliano on a temporary layoff scheme from 29 October to 9 November, Reuters reported a company source as saying. Employees at the plant have already experienced a layoff during 24-28 September and are currently in the midst of a 1-5 October layoff period.
Fiat Industrial SpA will also halt production at the San Mauro Torinese plant of its US farm equipment unit CNH Global NV, the Fiom trade union said in a statement on Tuesday. Workers at the CNH plant will be put on temporary layoff for nine days in November and five days in December, the statement said.
The additional layoff at Pomigliano is a continuation of Fiat’s strategy of avoiding plant closures in its home market by putting factories on short-time working through the autumn.
Fiat Chief Executive Officer Sergio Marchionne, recently stressed that the company spent €800m (US$1.05bn) developing the new version of its Panda compact car, which is made at Pomigliano, adding “but it isn’t selling, because there is no market.” The model was the best selling car in Italy in September and in the first nine months of 2012, with sales of 9,113 and 88,537 units, respectively.
