Attacks force Fiat to lay off 20,000 workers

Italian car maker Fiat is cutting back production by 30,000 vehicles and temporarily laying off 20,000 employees due to the terrorist…

Italian car maker Fiat is cutting back production by 30,000 vehicles and temporarily laying off 20,000 employees due to the terrorist attacks in the United States.

Chief executive Mr Roberto Testore said the European car market is seen contracting by 5-8 per cent in the last quarter of the year due to the new financial conditions imposed by the September 11th attacks.

He also said Fiat will probably have to cut back its worldwide unit sales forecasts but that it was too soon to tell by how much.

Workers will still get 80 per cent of their salaries while laid off.

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AP