Fiat Auto chief executive Giancarlo Boschetti would not rule out further job cuts, saying the firm was struggling with excess capacity of 20 to 30% while working to maintain its product investment spending, Reuters reported.
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“Our cost structure is not ideal…we are in the midst of a massive cost reduction programme,” Boschetti said at a conference ahead of the Paris motor show, Reuters said.
When asked whether Fiat Auto would cut more employees he said, “Who knows?” Reuters said.
According to Reuters, Boschetti said Fiat Auto needed a minimum of 3.5% overall cost reduction each year. Suppliers would play a role in achieving that, but he did not offer specifics on his plans, Reuters added.
Reuters said GM took a 20% stake in the Italian carmaker in 2000 and agreed it could buy the rest from 2004 under the option given to Fiat.
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By GlobalDataAsked if Fiat would try to bring the sale forward, Boschetti said, “No, from what I understand,” according to Reuters.
Boschetti said he expected car platform joint ventures with General Motors to produce savings of 150 million euros but did not give a time frame or further details of the savings, Reuters added.
