Fiat, which this week reported a 299 million euro first quarter loss, yesterday said it would temporarily lay off around 19,000 workers over three weeks in June, cutting production by 14,700 cars.

The June cuts will see the struggling company cut this year#;s output by 39,700 units.

Italian newspapers are speculating that Fiat could ultimately send 3,000 to 5,000 workers home permanently out of a a global work force of 198,764, almost half of whom work in Italy.