DOW JONES NEWSWIRES
Italian auto maker Fiat SpA (FIATY) denied Tuesday a report on
the Web site of the Frankfurter Allgemeine Zeitung alleging the
company plans to close 10 plants throughout Europe and cut 18,000
jobs once it takes over German car maker Adam Opel AG and the
European operations of General Motors Corp. (GM).
"The Fiat Group clearly states that it is not information
generated by Fiat and does not form part of any plan prepared by
Fiat," the Italian auto maker said in a brief statement responding
to the FAZ report.
Most of cuts are planned in Italy and England, the German daily
reported, citing an internal Fiat document.
After a Fiat-Opel-GM Europe merger, the Italian car maker plans
to close plants in Luton and Ellesmere Port, England, and in
Antwerp, Belgium, as well as Pomigliano and Termini Imerese in
southern Italy, according to the report. FAZ said it has seen an
internal Fiat document titled "project football," dated April
3.
Fiat plans to close the 10 European plants by 2016, starting in
2011 in Antwerp, according to the report.
Fiat and GM/Opel together have 108,000 employees in Europe, FAZ
reported. It also reported that there will be cuts in the German
plants in Bochum, Kaiserslautern and Ruesselsheim.
Fiat's board of directors met Sunday and authorized Chief
Executive Sergio Marchionne to seek a potential merger between Fiat
and GM's European operations, including Opel and U.K. unit
Vauxhall.
If a deal is reached, Fiat would consider creating a new
publicly traded company that combines the auto maker's car unit,
Fiat Group Automobiles, with GM's European operations.
-By Enza Tedesco, Dow Jones Newswires;
enza.tedesco@dowjones.com