Fiat to down shutters for 8 days this summer in bid to save millions
Fiat, the Italian auto manufacturer will be closing shop for 8 days this summer in an attempt to save some money. Due to this decision 5400 of the company employees at their Mirafiori plant in Italy will have 8 days holidays while the company will save approximately $1.25 million per day. This step is being taken to save cash and minimize losses that Fiat has faced in various European, African and Middle Eastern markets.
The first round of shutting operations will commence from June 14th and 15th while the second round is expected on June 20th and 21st while July will see four days of shut down as well. Following this, in the month of August there will be a month long shutdown but this is not unusual for the company which normally shuts shop for a month during summer. Throughout these days of shut down all employees of Fiat will receive 80% of their salaries.
This kind of money saving shut down by auto companies is something which has been experienced by other auto manufacturers as well. It was in 2009 that General Motors shut down as cost saving measures, and early 2012 saw GM shut operations of the Volt vehicle for 5 weeks to permit sales to catch up with production. In 2011, Honda, Toyota and Nissan too had shut their North American operations following earthquakes and tsunami in Japan which resulted in short supply of spares and other accessories.