Fiat Extending Summer Plant Closure to Fight Low Demand

FiatFiatItaly, 1899 > present159 models
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is fighting weakening European demand by keeping the Pomigliano, Italy, factory closed for two extra weeks during the summer. The factory builds the Fiat PandaFiat Panda Gen.3Italy, 2011 > present24 versions
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. 

The extended closure attempts to combat what Fiat claims is its worst sales since 1979. The falling European market is hitting fiat especially hard. With the Panda and 500Fiat 500 (modern)Italy, 2007 > present240 versions
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it has a focus on the city car market that has been especially hit in the recession. 

The European car market has shrunk 6.3% in the first six months of this year. In Italy new car sales are down 19.7% so far this year. Fiat's sales are down 16.5% so far this year. 

"The sales crisis does not appear to stop. The Italian market, which is now back at levels last seen in 1979, is penalizing Fiat, especially in the city car segment where the group owns 60 percent of the market with its Panda and 500 models," said a Fiat spokesman.

In the longer term, Fiat says that it will close a plant if things do not get better. It closed a factory in Sicily in 2011. Part of Fiat's plan for revival lies in the US where it is buying progressively more of ChryslerChryslerUnited States of America, 1925 > present70 models
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. Until now, Fiat had basically focused on Europe; now it is expanding to the US. 

Source: Automotive News Europe