Fiat Auto SA has said that the restructuring at Italian manufacturer Fiat SpA would not impact on the local company.
Fiat Auto SA has said that the restructuring at Italian manufacturer Fiat SpA would not impact on the local company.
The Italian company has lost more than R13 billion over the past three years. It is trying to raise R34 billion by selling new shares and bonds to reduce debt. It will sell assets worth about R19 billion in 2002.
Fiat SpA announced that 6 000 jobs will be cut and 18 factories will either be closed or restructured and a new boss has been named. Roberto Testore will be replaced by Giancarlo Boschetti.
Nancy Rispoli, Fiat Auto SA’s public relations manager, told Business Report that the changes at the company in Italy would not affect Fiat Auto SA’s management structure or its model lineup.
Fiat Auto SA has a manufacturing agreement with Nissan SA to manufacture some models in South Africa, including the Fiat Uno, Palio and Siena.
Shares in Fiat, Italy’s largest industrial group, fell more than 10 per cent after the group unveiled its restructuring plans this week.
Attempts to cut debt have been hampered by weak cash flow and high investment costs. According to the Financial Mail, Testore’s departure has also been hastened by a poor performance in Latin America in recent months and a mixed reception to the new Stilo that competes with the VW Golf.
