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Thu, Nov 13, 2008
AFP
Fiat extends temporary work suspension

ROME, ITALY - Italian automaker Fiat has scheduled another week of temporary work suspension for workers as it confronts sagging demand amid the global economic turndown, a source close to the company said Wednesday.

In addition to a two-week suspension already under way, it has told employees to stay away during the last week of November at its flagship Mirafiori factory in northern Turin, the source said.

The new suspension will also be observed at the Alfa Romeo Mito line. The state of the auto industry is a key indicator of overall economic health.

Fiat said late last month that its results for 2008 would be at the lower end of forecasts and that the world financial crisis would cut deeply into its profits in 2009.

In a worst-case scenario, according to the group, demand could fall 10 to 20% compared with 2008.

On Monday, US auto giant General Motors, which employs some 250,000 people, called for a government aid package after dropping plans to acquire Chrysler.

 

 
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