ITALY: Fiat helpless as huge strike cripples factories
By Simon Warburton | 25 January 2012
Four Fiat plants in Italy could remain shut until Friday (27 January) as massive motorway blockades by lorry drivers continue to wreak havoc with component delivery.
The plants at Mirafiori, Cassino, Melfi and Pomigliano D'Arco, will remain shuttered pending a dearth of parts deliveries as truckers step up their protests against draconian austerity measures introduced by the new Italian government in a bid to slash its huge deficit.
"The plants will be closed - we say day by day we communicate the shut-down," a Fiat spokeswoman in Turin told just-auto. "Today the first shift and second shift is closed - tomorrow we don't know.
"The drivers said 'til Friday, but we don't know if the government will take some measures to force them to deliver."
Nationwide protests in Italy against the drive to reduce the country' massive debt through higher indirect taxation, appear to be spreading with reports of railway workers, taxi drivers and even petrol stations striking.
The lorry drivers' grievances include higher insurance costs and an increase in fuel by eight cents a litre to EUR1.76 (US$2.30).
Fiat seems to be at the mercy of delivery companies as it does not stock components, operating a just-in-time philosophy.
"We are just waiting until the strike ends," said the Fiat spokeswoman.
Reports from Italy indicate widespread chaos with snarled up motorways, cities clogged with traffic as cab drivers strike and disruption at airports.
The huge protest comes in the same week that Fiat launched its new television advertising campaign, noting: 'We can chose which Italy we want to be...now is the moment to start anew through hard work and proving ourselves.'
Fiat's TV spots have been viewed by some as a thinly-disguised exhortation to adopt more flexible working practices in a bid to achieve higher quality.
Sectors: Commercial vehicles, Service suppliers/supply chain, Vehicle manufacturers, Vehicle manufacturing
Companies: Fiat
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