In order to save money Fiat will close its Turin headquarters in July and for 8 working days this month.
This means that around 5,400 employees from the Mirafiori headquarters will be affected by this plan aimed at saving Fiat about 1 million euro ($1.25 million) a day. Cassa Integrazione temporary layoff program will offer the workers 80% of their normal salary to stay home. The first closure is settled for June 14th-15th, followed by June 20th-21st, then four days in July and in August as usual for the summer vacation.
Fiat’s engineering and manufacturing operations, styling center, purchasing and administrative, and sales and marketing functions are all based at the Mirafiori offices. This temporary closure will help Fiat reduce losses in Africa, Europe and the Middle East Region.
From January to March the region’s trading loss increased from 107 million euro in 2011 to 207 million euro, and this is expected to get worse compared to last year’s 500 million loss. For the first quarter Fiat reported an 866 million euro trading profit, due to strong results from Fiat’s Brazilian operations and Chrysler’s.