Fiat’s Polish Plant to Trim Production, Cut Jobs

VIENNA – Fiat Auto Poland will cut 435 contract workers effective Oct. 1 in a move to scale back production at its plant in Tychy, Poland.

Tychy plant output off 16.7% in first-half 2011.

This will reduce the company’s number of employees to about 5,500.

The auto maker, which exports roughly 98% of its production, is facing declining sales in several markets.

The Polish factory suspended production two days this month. It is expected to cut output two days in October as well, supplier sources say.

“We will produce 470,000 to 480,000 cars in Tychy this year, compared to 533,000 last year,” Fiat Poland President Enrico Pavoni tells the Puls Biznesu business daily.

Pavoni says all models manufactured in Tychy are affected by the reduction.

In the first six months of 2011, Fiat Auto Poland manufactured 268,722 cars, down 16.7% from 2010’s record first half. The total includes 130,267 Fiat Pandas; 90,531 Fiat 500s; 36,009 Ford Ka cars; 7,646 Lancia Ypsilons; and 4,269 Abarth 500s.

Fiat Auto Poland set its full-year output record in 2009, when it manufactured 605,797 cars.