Sources told Automotive News Europe that the temporary shutdown will allow the carmaker to save around EUR1 million daily, affecting around 5,400 employees. However, employees are bound to receive about 80%t of their normal pay, funded by the Italian governmentís Cassa Integrazione temporary layoff program (wow, I wished that Singapore has a similar policy). Fiat will continue to close its head office in August as usual for the summer vacation.
The temporary closure of Fiatís head office is part of its efforts to cut losses in Europe, Asia and Middle East region, which posted a EUR207 million trading loss in the first quarter of 2012, compared with EUR107 million in trading loss in the same period last year. However, from a worldwide perspective, Fiat posted EUR866 million in trading profit for the first quarter of 2012 due to the strong performance of its Chrysler unit and Fiat's Brazilian operations.