Italian carmaker Fiat would cut some 18,000 jobs and 10 assembly and component sites at a combined Fiat/Opel company including both Vauxhall plants in England and two Fiat factories in Italy, a German newspaper reported.
The
Frankfurter Allgemeine Zeitungwrote that all 10 would be shut down between 2011 and 2016, citing a 103-page internal Fiat strategy plan dated April 3rd
The plan was written in English and dubbed "Project Football". The report is in an advance copy of the newspaper's Wednesday issue.
The closures should eventually lead to additional free cash flow of about €4.3 billion by 2015, the newspaper said.
Fiat chief executive Sergio Marchionne met German officials on Monday to discuss an offer for Opel, the German unit of General Motors Corp. Fiat would shut down Opel car manufacturing plants in Luton and Ellesmere Port in England, home of its sister brand Vauxhall. The plant at Antwerp, Belgium, would be the first to go in 2011, according to the report.
Among Opel component sites, some or all of the engine and transmission production in Germany's Kaiserslautern, Ruesselsheim and Bochum plants would be closed. Austria's Aspern would also be shut down.
In Italy, Marchionne would shut Fiat's Pomigliano plant where most Alfa Romeos are built along with Termini Imerese in Sicily, which manufactures Lancia Ypsilons.
A Fiat spokesman had no comment. Closing the five carmaking sites would cost upfront 1 billion euros but reap 282 million in annual savings. The five component factories would bring in another €200 million in savings every year.
The paper reports Fiat wants to gain access on the cheap to GM's platforms on which it builds the Opel Corsa subcompact, the Astra compact and Insignia mid-size car.
Reuters
