Fiat Auto SA calms fears

The current retrenchments at Fiat Auto in Italy have no bearing on Fiat Auto South Africa’s operation, the company says.

The current retrenchments at Fiat Auto in Italy have no bearing on Fiat Auto South Africa’s operation, a spokesman for the Italian automotive giant’s local subsidiary said on Thursday.

The announcement follows a report published by CARtoday.com on Tuesday. In the report, the embattled Italian manufacturer said it was laying off 550 workers due to slow demand for its cars.

But the current retrenchments at Fiat Auto in Italy will have no impact on Fiat Auto South Africa, and the company was “continuing with all future product plans in line with predetermined business plans and objectives,” Fiat Auto SA public relations manager Rella Giuricich said.

“New models that will be launched later this year in the South African market will include the new Fiat Weekend, an Alfa Romeo 147 five-door variant and 2002-spec Alfa Romeo 156.

“Fiat Auto South Africa is committed to growing and improving its business relations with its dealers and suppliers, as well as continuing to expand its market share in South Africa,” she added.

The workers affected by retrenchments in Italy are at four joint-venture factories with General Motors. Fiat’s Western European car sales are down 19 per cent this year and its market share has fallen to 8,8 per cent from 10,4 per cent a year ago.

Fiat-GM Powertrain employs 24 000 workers at 17 factories worldwide. Most of the layoffs are at the Mirafiori complex in Turin, with the rest in Arese, Termoli and Verrone, which make engines and transmissions for Fiat, Alfa Romeo and Lancia cars.