Fiat has announced it will halt production at its Pomigliano plant for two weeks this autumn as a result of weak demand.
The Italian carmaker’s announcement comes as more and more European carmakers are trying to take steps to deal with five years of declining car sales on the continent.
On Wednesday, Fiat, Italy’s biggest private-sector employer, said it will place its Pomigliano workers on a temporary layoff scheme from September 24 to 28, and from October 1 to 5. the 2,200 workers will only receiving 80 percent of their normal salary through Italy’s government cassa integrazione scheme.
“The reason is because of the situation of the market, because of the sales. We have the agreement of the unions for this. We told the unions the plant will be closed,” a Fiat spokeswoman was quoted by Just Auto.
The plant is currently making the Panda city car. Fiat’s CEO Sergio Marchionne will make an important announcement on October 30 regarding the automaker’s investment plans and the unions are concerned that the company may be postponing investment or even shutting down a plant.
Fiat is losing money in Europe, like most other mass-market carmakers, excluding Volkswagen. On the bright side, Fiat’s Chrysler business in the United States is profitable.