Fiat to reduce capacity by 20.(Fiat S.p.A. will cut auto manufacturing capacity by 20%)(International Pages)(Brief Article)(Statistical Data Included)

Automotive News, September, 2002

Fiat S.p.A. plans to reduce auto manufacturing capacity by 20 percent and may cut additional jobs as the Italian carmaker struggles to become profitable, said Giancarlo Boschetti, chief executive of the company's auto division.

Italy's largest industrial company needs to invest $2.5 billion a year in new products, Boschetti said Wednesday, Sept. 25. Fiat's labor unions say the cuts may result in the loss of as many as 6,000 of the company's 55,000 jobs in Italy.

Fiat, which is controlled by the Agnelli family, is having its worst year in a history that spans more than a century, losing market share to PSA/Peugeot-Citroen SA, Renault SA and other rivals. Fiat Auto expects a loss of $1.2 billion this year. Sales fell 19 percent in Western Europe through...

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