Fiat extends summer break at its Pomigliano plant near Naples image

Fiat SpA, Italy’s biggest carmaker by volume, will extend the summer break at its Pomigliano plant, near Naples by two weeks to adjust output to rapidly falling demand in most part of the Europe.

In a statement, Fiat said it will suspend Italy-based Pomigliano’s production between Aug. 20 to 31, following the planned summer closure.

“Today’s situation makes us reduce production (at Pomigliano) to avoid useless and expensive stocking of vehicles,” it said.

“In coming months the situation will be continually monitored,” Fiat said.

According to figures released in June by the European Automobile Manufacturers’ Association (ACEA), car sales in general in Italy decreased 18.9 percent from January to May.

Earlier this year, Fiat announced that it would put off production of a compact SUV (referred to pre-production as the “B-SUV” and now slated for production in 2014). The company also announced that it would delay a $1.3 billion expansion of its Mirafiori plant, near Turin. The plan would have greatly increased the plant’s production capability.