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Italian Auto Giant To Lay Off 65,000 Workers For One Week

January 10, 1991

TURIN, Italy (AP) _ Fiat announced Thursday it plans to lay off 65,000 workers for one week in February because of the sluggish demand for automobiles.

Paolo Gasca, the head of industrial relations for the Italian auto giant, said the temporary reduction of the work force that begins Feb. 11 will cut back production by 40,000 cars.

He said a decline in car sales might cause another temporary layoff during 1991. No recovery is exapected in the world auto markets until 1992.

Car sales in Italy, Fiat’s biggest market, fell 0.6 percent in 1990. It marked the first time since 1984 that the domestic car market went down.

The laid-off workers, who will receive more than 80 percent of the regular salary from a national fund, represent about one-third of Fiat’s auto total labor force.

Fiat, which is owned by the Agnelli family, already had resorted to temporary lay-offs of about 70,000 workers in November because of a slowdwon in demand.

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