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Fiat to Lay Off 1,500 Employees in Poland
Fiat SpA says it will shed about one-quarter of the 5,800 jobs at its assembly plant in Tychy, Poland.
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Fiat SpA says it will shed about one-quarter of the 5,800 jobs at its assembly plant in Tychy, Poland.
The factory will eliminate one of its three operating shifts because of plunging sales. Details of the job cuts are to be worked out with local unions by mid-January.
Fiat notes that the A segment cars made in Tychy the Fiat 500 and Panda, Lancia Ypsilon and the Ford Ka are the hardest-hit segment of Europe's sagging auto market. The company says the cutbacks won't affect its ability to supply the Ka to Ford under contract.
The Polish plant is Fiat's most productive facility in Europe. But the Italian company has met enormous political opposition to its attempts to close less efficient factories in its home market.
The Tychy factory will end production of the Panda minicar at year-end. The next-generation Panda will be built at Fiat's plant in Pomigliano, Italy.
The Polish factory will produce fewer than 350,000 vehicles this year, according to the company. It expects output to fall below 300,000 units in 2013. The facility made more than 600,000 units in 2009.
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