Fiat is to close its Pomigliano d’Arco plant in Italy for a total of five weeks later this month [July] in a bid to address enormous over-capacity in Europe and plunging confidence in its domestic market.
Pomigliano, near Naples, produces the new Panda, but will shut from 20 August – 31 August in addition to the normal summer break from 23 July to 17 August, effectively shutting the plant for five consecutive weeks.
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“It [shut-down] is related to the downfall of the European market and the Italian market,” a Fiat spokesman told just-auto from Fiat’s headquarters in Turin.
“Considering the investment we have done so far, I don’t think production will stop for the long term. And also we have to produce the new Panda.”
It is unclear at this stage whether or not workers at the plant will be required to take the break as part of holiday entitlement or if the temporary closure will be unpaid.
The Pomigliano plant is no stranger to closure having shut earlier this year as Italy endured enormous disruption following a transporter drivers’ strike that crippled vast swathes of the country.
Some EUR100m (US$122m) has been spent on the Pomigliano plant, which has been completely retooled following Fiat’s decision to bring production of the Panda from Poland to Italy.
It appears the extra two weeks will be covered by the Italian ‘cassa integrazione’ system, a form of State insurance.
The FIOM union at Fiat was not immediately available for comment.
