Fiat Extends Pomigliano Production Halt as Demand Slumps
Fiat will keep its Pomigliano d’Arco plant idle for over two weeks from late October, citing weak European demand for the Panda and continued pressure on Italian jobs.
Fiat has confirmed that it will extend the production halt at its Pomigliano d’Arco plant near Naples, keeping the lines idle for more than two weeks from 29 October to 9 November 2012. The company cited continued weak demand for the Panda, which is built exclusively at Pomigliano, as the reason for the extended stoppage. Workers will be placed on temporary layoff during the shutdown, adding to a year marked by repeated interruptions at Fiat’s Italian factories.
The Pomigliano plant, which employs thousands in the Campania region, has faced a series of temporary closures throughout 2012 as Fiat attempts to match production with falling sales. According to the company, workers had only just returned from a two-week layoff earlier in October before being notified of the new stoppage. The plant produces the Panda city car, a key model for Fiat in Europe, but sales have fallen along with the broader European market.
Impact on workers and Italian production
Fiat’s use of temporary layoffs, or cassa integrazione, has become a regular feature at its Italian factories as the company responds to a European car market that has shrunk for five consecutive years. Employees at Pomigliano and other sites have faced repeated periods at home on reduced pay, with the company seeking to avoid outright plant closures despite the prolonged downturn. Chief executive Sergio Marchionne has previously told unions that, although the market remains difficult, Fiat does not plan to close any Italian sites.
The Italian new-car market, along with those in Spain and France, has continued to contract, with August figures showing further declines. Industry executives have warned that the recovery could take years, and several manufacturers have resorted to layoffs or plant closures across the continent. Marchionne has said that the scale of the slump will force more closures in Europe, but has reiterated Fiat’s commitment to keeping its Italian facilities open.
Further production cuts and industry context
Fiat’s struggles at Pomigliano mirror wider cuts across its European operations. The manufacturer had already announced plans to reduce production by 300,000 vehicles in 2012, reflecting the persistent weakness in demand. Other Italian sites, including those producing commercial vehicles and agricultural machinery, have also faced temporary shutdowns. Fiat Industrial’s CNH Global unit, for example, planned to halt output at its San Mauro Torinese plant for several days in November and December 2012.
- Pomigliano d’Arco: Panda production halted for over two weeks.
- San Mauro Torinese: CNH Global plant idled for nine days in November and five in December.
- Other Fiat Italian plants have faced similar stoppages throughout 2012.
Fiat’s approach has been to manage output through temporary layoffs rather than permanent closures, but the measures have left Italian workers facing uncertainty. The company’s decision to keep Pomigliano idle for a further two weeks underlines the ongoing challenges for both manufacturer and workforce as the European market shows little sign of immediate recovery.
For more on Fiat’s Italian production strategy and previous plant shutdowns, seeFiat to Cut European Production by 300,000 Vehicles in 2012.
