Fiat Panda Production Hits Roadblock

The fallout of last year's economic crisis, still raining down on Italian carmaker Fiat, is continuing to cause disturbance within the ranks of the company. The resurrection plan announced by CEO Sergio Marchionne still hasn't received all the support it needs to become reality.

The main detractors of the plan are the unions, whose support Fiat says is essential. In an attempt to come to a conclusion with its workers, Fiat and representatives from several of its unions (FIM, UILM, FISMIC and UGL) met late last week to discuss the fate of the Giambattista Vico plant in Pomigliano d'Arcopresent.

Fiat needs, as it does elsewhere, to make the facility more efficient. It plans to relocate Panda production from Poland to the aforementioned facility but this, naturally, implies cutting down cost and personnel.

"Time is running out", Fiat CEO Sergio Marchionne said after the meeting. "The protracted negotiations with the unions have already resulted in a delay in the investment necessary to begin production."

Marchionne, one of the most active automotive CEOs last year, gave an ultimatum to the unions to accept the proposal, threatening to move Panda production elsewhere altogether. The deadline is June 4, when the next meeting with the unions is planned.

"It is my hope that a conclusion can be reached rapidly as it will soon be impossible to accept further delays. In the absence of an agreement that offers adequate guarantees, reassessment of the project and consideration of other alternatives for production of the future Panda may be unavoidable," Marchionne adds.