Fiat Auto on Wednesday announced a new round of temporary lay-offs in Italy that will reach 21,700 workers – nearly its entire assembly line workforce – during the last week of August.

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The company said it will reduce production by 40,000 vehicles during the August 19 to September 22 period as a result of the layoffs.

Fiat Auto has been increasing the number of weekly temporary lay-offs since early this year when the Italian car market began to slump.

Fiat Auto previously announced that it would suspend work next week for 6,400 employees, while 11,000 will be temporarily laid off the following week. All of Fiat’s plants close for three weeks of regularly scheduled holiday between July 29 and August 18.

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