According to the last reports from an Italian newspaper, La Republica, Fiat SpA is planning to cut 5000 jobs and production of 4 models from its Italian production line up. Fiat currently has 12 models in production in Italy of which four models along with its 15 percent workforce will be shed as a part of its new 2010-2014 business plan. Fiat is already planning to lay off 1,500 workers at Sicily's Termini Imerese plant, scheduled to close on Dec. 31, 2010, and a further 500 at the Cassino plant. However, it also intends to increase its production in Italy by at least 50 percent to 900,000 cars.
Fiat acquired 20 percent stake in struggling US car maker Chrysler last year. It intends to produce 350,000 units annually in the US market as total 7 models under its Fiat, Lancia and Alfa Romeo brands.
Fiat will present its strategic plan on April 21 and has commented that these revelations are purely speculative, premature and groundless. However, the news report has sent stocks to hit 2-month’s peak high making it the lead gainer in the European sector.
