Fiat signs plant upgrade agreement with Melfi workers

Auto managers, trade unions agree to temporary layoffs

Fiat signs plant upgrade agreement with Melfi workers

Melfi - Italian automaker Fiat on Thursday signed an agreement with trade union representatives of workers at its Melfi plant in southern Italy that will include temporary layoffs over a two-year period ahead of relaunch. Fiat announced plans earlier this month to revamp the factory to change the models it produces there, adding that it would invest one billion euros to do so in the next few years to permit the production of new vehicles there. The Melfi plant is set to stop production from February 11 until December 31, 2014 so that it can switch from making the Fiat Punto to the carmaker's new 500X SUV and a new model Jeep. Fiat will stop one production line at a time out of two in rotation at the plant as part of the upgrade.

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