Fiat to shut down production for 8 days to cut costs
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In an attempt to cut down on costs, Italian car maker Fiat is planning to stop production for eight days in this summer season. This move will help the company save as much as USD 1.25 million every day, while the 5,400 strong workforce at Mirafori plant in Italy will have an off on 8 day in June 2012. With this shut-down, Fiat is trying to save money and hedge the losses it faces in markets like Europe, Africa and Middle East.
June 14 and 15 will mark the beginning of the first round of this shut-down by the company, while the second round will start from June 20 and 21. The plant will also remain shut down for four days in the month of July as well. After this, the facility will stay shut for a month in August. However, for an organisation which usually stays closed for a month during the summers, this comes as no surprise. The employees of Fiat will still get 80 per cent of their salaries during this shut-down.
Other car manufacturers, too, have been pulling down the shutters at their production plants temporarily in order to save money. In 2009, General Motors stopped its production temporarily to cut the operational costs, while it halted the production of Volt in beginning of 2012 to make demand and supply meet. Toyota and Nissan, too, stopped their operations in North America due to earthquakes and Tsunami in Japan in 2011 as they were facing a crunch in the supply of spare parts and other accessories
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