Friday, March 16, 2012

Fiat output in Italy at a halt over lorry strike


Keith Damron dusts a Fiat 500 C at tDetroit auto show in January

All five of Fiat's car factories in Italy are shut and are likely to remain so over the weekend due to a lorry driver strike which threatens heavy losses, a company spokesman told AFP on Friday.

The factories in Pomigliano, Cassino, Sevel, Mirafiori and Mefli were all closed and would open Monday at the earliest, the spokesman said.

An earlier Fiat statement regretted that "a strike by vehicle transporters in Italy has been causing significant difficulties for the entire automobile industry, and for Fiat Group Automobiles in particular."

It said the situation was "particularly damaging for Fiat Group Automobiles because it has made it necessary to significantly reduce, or even stop production at certain plants, with a considerable impact on sales and share performance in both Italy and abroad."

Lorry drivers walked out repeatedly in January and February and Fiat's factories ground to a halt on January 24 as a result of nationwide strike action launched by drivers against a new government tax that has increased fuel prices.

On Tuesday the Trasportounito-FIAP union behind the strike noted that the buyer of a small Fiat 500 in southern Italy "must pay 530 euros ($695) in transport costs" while the company shipping the car from near Rome to the dealership is only paid 17 euros for the 270 kilometres (170 miles) ride.


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