Citing lowered demand of Fiat cars in Europe, Tofas in Turkey has reduced capacity and number of shifts. Tofas is the local producer of Fiat cars under license, which are also exported to other European countries. Following this announcement, it can be expected that layoffs and risks for many sub producers in the regions are forthcoming. One of the many Fiat cars this plant manufactures is the new facelift Linea, which is India bound later this year in third quarter.
During the last year car export sales brought in $19 billion considering unofficial statistics from Turkish Exporters Assembly. The current market activity has influenced sales of cars which have dropped down considerably as only 1.4 million vehicles found owners in Italy during 2012 as compared to 1.7 million in 2011.
Apart from the low demand of Fiat vehicles, PSA states that though it had cut off all its ties from Fiat following the signing of an agreement with GM, it will continue their collaboration relating to production of commercial vehicles during 2013. Through this collaboration, vehicles like Boxer vans, Peugeot Fiat Ducato and Citroen Jumper are built at a factory in the South of Italy. The Fiat Fiorino which is built by Tofas in Bursa, Turkey will be rebadged by PSA and sold as Citroen Nemo and Peugeot Bipper Tepee.