Fiat will close a factory of a subsidiary in Italy, a move that will cut up to 500 jobs, the company said on June 23, citing falling demand in the economic crisis.
A spokesman said the closure of the factory of Fiat's CNH subsidiary, which makes construction vehicles near the central city of Bologna, would take place within two years and the production would shift to other factories in Italy.
He said the closure was due to "a 50% fall in the market for construction vehicles in Europe."
The spokesman added that Fiat would offer some employees jobs at factories elsewhere in the group and some would get early retirement. He did not say how many people would be made redundant.
Copyright Agence France-Presse, 2009