MILAN (Thomson Financial) - Fiat SpA CEO Sergio Marchionne said the company
has decided on a series of temporary layoffs at various plants over the next
several months, after seeing the weak new car registrations for June.
Italian trade unions on Monday said various Fiat Auto plants and two CNH
Global NV heavy machinery plants will see temporary lay-offs of up to two weeks
a month between August and December.
Fiat decided on the temporary layoffs "after we saw the trend in June on the
Italian car market, which continues to have a heavy impact on the European
market share", Marchionne said.
Italy new car registrations in June fell 19.50 percent to 184,275, though
Fiat's market share rose to 32.68 percent from 31.50.
"We have been absolutely clear on the" temporary layoffs, the CEO said.
"A couple of plants are excluded, such as at Val di Sangro, where we produce
the Ducato (van) and commercial vehicles for our French partner (PSA), and at
Cassino, which is involved in the launch of the Delta," he said.
Fiat's Lancia brand launched the latest Delta model in June.
Unions said Monday the Alfa Romeo brand's latest MiTo model is also not
covered by the temporary layoff programme.
Marchionne said the CNH layoffs at earth-moving machinery plants reflect the
"end of the economic cycle of the sector. We have reached the bottom and we see
the sector picking up end-2008, in 2009."
In the auto sector in June, Europe as a whole was "not a disaster" and Fiat
kept its market share above 8 percent, he said.
"Brazil and Latin America continue to go very strongly and we don't see any
clouds on the horizon. 2008 and 2009 will be exceptional years," the CEO said.
Marchionne said Fiat has no interest in General Motor brands that the U.S.
company could sell.
The Fiat chief reiterated the group is not planning to demerge its auto unit
and said various alternatives continue to be studied for Alfa Romeo's U.S.
market launch.
nigel.tutt@thomsonreuters.com
nt/kf1
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