Fiat SpA, the Italy-based car manufacturer that introduced
cars like the Ferrari, Maserati and the Alfa Romeo among
others to the world, has, in the first half of 2002-03
incurred an operational loss of more than 800 million
euros. Now, in a major move, Fiat is laying off 8,100
workers as part of a crisis plan designed to save the
crisis plan released after detailed talks between the
management and trade unions in Rome will give the company
a new boost to the profitability necessary for its
development, says the company.
says the workers will be sent home on protective redundancy
from plants in Turin and Sicily beginning December 2002.
Umberto Agnelli, head of the Agnelli familys holding
companies, which control Fiat Auto, says he is saddened
about the proposed job cuts but says they are necessary.
also makes it clear that it is unlikely that Europes
once biggest carmaker would bring forward an option to
sell out to General Motors (GM) from 2004. GM holds 20
per cent of Fiat Auto and the Italian company holds an
option that could require GM to buy the remaining 80 per
cent from 2004.
of Italy has a car empire spanning the globe and is also
into a number of other businesses ranging from power to
insurance and publishing. But in the past decade or so,
competition from the Japanese, Korean and American carmakers
as well as a recession in global markets has resulted
in Fiat Auto recording a steady decline in sales.
in China and India
Other reports appearing in journals and notably in the
newsmagazine Il Mondo say the Italian carmaker
is planning a major recast of its international operations
also. And in what could be good news for India, China,
Brazil and Turkey, the company is planning to consolidate
its operations in these countries. As a corollary to this,
the company will drastically scale back operations in
it may sell or shut down plants in Morocco, South Africa,
Egypt, Thailand and Pakistan. It also plans to keep output
at minimal levels in Argentina and freeze investments
in Russia for the present.
international arm that accounts for 24 per cent of group
revenues is targeting to achieve an operating profit of
100 million euros by 2005.