Fiat has put some 800 workers at its main Brazilian plant on leave for 10 days to cut output and reduce growing inventory.
Reuters reported that the workers account for nearly 5% of the 15,000 total at Fiat factory in Betim, outside the capital of Minas Gerais state.
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“The reason for the collective holidays is to adjust output plans to meet demand,” Fiat’s media department said, adding that the automaker has no plans to cut its workforce or to put any more workers on paid leave.
The local metalworkers’ union, however, said that Fiat and its suppliers in the area had recently laid off an additional 599 workers. Fiat would not confirm the layoffs, saying any job cuts will be detailed in its annual report in February, Reuters said.
Fiat produced about 3,000 vehicles a day at the plant before credit in Brazil dried up because of the global liquidity crunch and reduced demand for cars and trucks. Daily output has been reduced to 2,400, the union said.
