Fiat Idles ALL Italian Plants for Two Weeks

Even if it joined forces with Chrysler, this doesn't necessarily mean that all things are going great for Italian carmaker Fiat. In fact, the domestic market is going from bad to worse, as both the demand and the local sales are decreasing continuously. As a result, Fiat turned to a shocking decision: it will suspend production of all Italian factories for a period of two weeks.

Fiat's six Italian plants will be closed during the last week of February and the first week of March, the Financial Times reported, with approximately 30,000 workers to be affected by the decision.

Obviously, worker unions are worried and expressed their surprise when hearing the announcement.

"We are worried and we didn't expect this," said Eros Panicali, head of the Uilm trade union.

In the meantime, Fiat is continuing its plans to shut down the Sicily plant despite protests across Italy. The factory is scheduled to be closed after 2011, according to earlier reports.

"We have decided to shut down a plant in Sicily. That decision is irreversible," said Sergio Marchionne, Fiat and Chrysler’s CEO.

"The reason, simply put, is that European manufacturers simply do not close plants. In fact, they're often paid not to," he continued, hinting that he disapproved of the government’s subsidies that “distorted” the European car market. "We are the largest industrial organization in Italy but we do not have the responsibility to govern the country," Marchionne said of Fiat. "The argument stops there," he said at the Automotive News World Congress.