Chrysler Furloughs Workers as Fiat 500 Inventory Climbs
(Story via Edmunds AutoObserver ) DUNDEE, MI-Chrysler Group LLC is laying off workers and reducing output at its engine plant in Dundee, MI, that makes 1.4-liter 4-cylinder engines for the Fiat 500, reported trade journal Automotive News. A United Auto Workers union official said the layoffs amount to about one-quarter of the plant’s 400-member workforce, although a Chrysler source said the number is less, with many employees redeployed to other jobs.
Italy’s Fiat S.p.A., which in July obtained majority ownership of Chrysler, was awarded a minority ownership of Chrysler and became managing partner of the company when Chrysler exited bankruptcy in 2009. Prior to that in January, Fiat obtained an incremental 5-percent stake in Chrysler from the U.S. Department of Treasury in exchange for agreeing to build the fuel-efficient 4-cylinder engines in the U.S. Data from Edmunds.com’s proprietary Days To Turn metric indicate that in July, it took a Fiat 500 about 26 days to be sold once it reached a dealer, but the number has been rising ever since. In October, the DTT figure for the Fiat 500 was 55 days.
Italy’s Fiat S.p.A., which in July obtained majority ownership of Chrysler, was awarded a minority ownership of Chrysler and became managing partner of the company when Chrysler exited bankruptcy in 2009. Prior to that in January, Fiat obtained an incremental 5-percent stake in Chrysler from the U.S. Department of Treasury in exchange for agreeing to build the fuel-efficient 4-cylinder engines in the U.S. Data from Edmunds.com’s proprietary Days To Turn metric indicate that in July, it took a Fiat 500 about 26 days to be sold once it reached a dealer, but the number has been rising ever since. In October, the DTT figure for the Fiat 500 was 55 days.
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