DECEMBER 12, 2001

European car makers worry as Fiat cuts back

The European car companies may be talking big about starting their own Grand Prix championship but the industry is worried about what cuts will be needed as a result of the current recession.

THE European car companies may be talking big about starting their own Grand Prix championship but the industry is worried about what cuts will be needed as a result of the current recession. Fiat has just announced a restructuring plan which will slash 6000 jobs and will see the chief executive of the car business Roberto Testore replaced by thee current head of the Iveco truck company Giancarlo Boschetti.

Although car sales have been kept up thanks to great deals offer the demand for new machinery is expected to be down dramatically next year and companies which are carrying large debts are therefore worried. Other companies are also heavily indebted at the moment, notably Renault, DaimlerChrysler and Volkswagen.