Reuters is reporting that Fiat and its unions reached an agreement yesterday to put about 5,300 workers at the Mirafiori plant on a temporary layoff plan that could last up to 18 months. Reuters’ sources said the furloughs will begin April 2.
The layoffs were expected due to the decline of the new vehicle market in Europe.
“We signed an agreement for 18 months of temporary layoffs for all workers, which will be approved on Friday by the regional government of Piedmont,” said a union source. “Work to install new equipment on the new assembly lines will start during the first half of this year.”
Fiat will continue building the Alfa Romeo MiTo, Fiat Idea and Lancia Musa at Mirafiori.
Fiat has said Mirafiori will get new Fiat SUV at the end of 2013, and a Jeep-branded SUV starting in the second quarter of 2014.