Fiat to Cut Production by 100,000
ROME (AP) _ Fiat SpA said Thursday it plans to cut back its car production by 100,000 units by the end of the year because of the Sept. 11 terrorist attacks in the United States.
``This will have economic consequences, consequences that will be announced at a future date,″ the company’s honorary chairman, Gianni Agnelli, said on the sidelines of a conference in Rome.
Fiat, which holds the largest slice of the Italian car market, said last week it would cut production in October by 30,000 units by temporarily laying off workers. That cut is included in the 100,000 units figure.
``There is no doubt that in the last three to four weeks, car sales have registered a sharp decline,″ Agnelli said. ``A decline in orders means a decline in production, that means we will have layoffs in Piedmont.″
He did not specify how many workers would be laid off. Piedmont is the northwestern region home to the city of Turin and Fiat’s headquarters.
The fresh production cuts came one day after the transportation research group Centro Studi Promotor said orders for new cars in Italy in the two weeks following the Sept. 11 attacks dropped 35 percent and would strain October car sales figures.
Italy’s September new car registrations fell 10.9 percent on the year to 163,200 vehicles.