In this December 14, 2011, file photo, Fiat and Chrysler CEO Sergio Marchionne gestures next to the Fiat Panda model, at the Pomigliano D'Arco Fiat plant, near Naples, Italy. Fiat said Wednesday, July 18, 2012, that it will close the Pomigliano plant, which makes the subcompact Panda model, from Aug. 20 to 31 to avoid "the useless and costly accumulation of vehicles." The extraordinary shutdown is in addition to a month-long holiday closure that begins July 23. AP PHOTO/LAPRESSE
ROME—Auto giant Fiat will temporarily suspend production at one of its Italian plants between August 20 and 31 in response to slumping European car sales, the company said Wednesday.
“The situation requires us to reduce production to avoid a useless and costly accumulation of vehicles,” said a statement from the group, which includes the Lancia, Alfa Romeo, Chrysler, Jeep and Dodge brands.
The affected plant in the southern city of Pomigliano will have two extra work weeks tacked on at the end of its normal summer break from July 23 to August 17, and “the situation will remain under observation for the coming months,” the group said.
Fiat blamed the closure on “the crisis in the European and particularly the Italian automobile market,” which it said had shrunk 6.3 percent and 19.7 percent respectively in the first half of the year.
The head of the company, Sergio Marchionne, had said earlier this month that Fiat would be forced to permanently close one of its Italian plants if the European market continued to slump.
The announcement on the Pomigliano plant came as workers at another factory in the southern city of Cassino were on strike to protest the possible closure.
New-car sales in Italy fell 24.4 percent in June from the same period last year, the ninth consecutive monthly drop, according to transport ministry figures.