Filed under: Hirings/Firings/Layoffs, Chrysler, LLC., FIAT, UAW/Unions
Although there's been plenty of positive news regarding Fiat (and Chrysler), apparently everything isn't peachy across the Atlantic. Just like almost every other manufacturer out there, the Italian automaker is looking at the possibility of massive layoffs in the near future. And just like almost every other manufacturer out there, they are asking the government for some help. Italian union leaders and Fiat's chief executive are reporting that as many as 60,000 jobs could be lost unless the government steps in.
The Italian government is expected to start aid negotiations with the unions and Fiat this week. Perhaps even more important to the Italian economy than GM is to ours, Fiat is Italy's largest single private-sector employer. With the global economic crisis hitting them hard, Fiat just reported a 70% drop in their fourth-quarter profits, and is predicting a further 20% drop in demand through 2009. We don't know yet how this aid will affect the new Chrysler/FIAT partnership or Chrysler's U.S. aid package, but we'll keep you posted as the story unfolds.