Fiat Extends the Production Halt at Its Pomigliano Plant image

Fiat announced it will halt production at its Pomigliano plant at the end of October for more than two weeks, due to weak European demand.

Employees from the Pomigliano plant, where Fiat manufactures the Panda compact, will be placed on a temporary layoff from October 29th to November 9th. This year, Fiat’s workers at its Italian plants have been sent on many times on temporary layoffs because of low demand. On October 5th, Pomigliano employees will return from a two-week layoff.

Last month, Fiat CEO Sergio Marchionne said that the European car market’s five-year slump will make more automakers close plants over the continent, but he assured unions he will not close facilities in the country, despite the difficulties in the domestic market. In August, Spain, Italy and France have seen sales drop further and European auto executives have warned that the industry might take years until it rebounds.

Fiat Industrial SpA, which manufactures trucks and tractors, has also announced it will stop production at the San Mauro Torinese plant of its U.S. farm equipment unit CNH Global. The employees from the CNH plant will be placed on temporary layoff for 9 days in November and 5 days in December.