Fleet News

Fiat plans overhaul in bid to cut losses

The Fiat Group has announced a dramatic overhaul in its European operations in a bid to halt sprialling losses and accumulating debts.

The firm has said it will cut 12,300 jobs in certain areas, most of them outside of Italy, as well as issuing 368.5 million new shares, at five Euros each, with three new shares for every five already held.

The board has approved the 1.8 billion Euros capital increase to help fund the restructuring, planned to see the company break even in 2004 and return to profitability in 2006. Last year, the company lost 1.2 billion Euros.

The firm will also take on 5,400 new employees in other areas as part of the plan. At the moment, Fiat employs 168,000 people worldwide, with 90,000 in Italy.

A number of new cars within the Fiat Group are intrinsic to the getting the company back on its feet. Last week, Lancia unveiled the new Ypsilon, Maserati the Quattroporte, while Alfa Romeo is hoping the GT Coupe will give it a foothold in America.

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