Fiat output to fall
TURIN - Fiat Auto will cut 42,500 units in the last two weeks of December and the first week of January. Up to 35,000 workers will be temporarily laid off each week.
Only lines producing the Fiat Panda and Multipla (Mirafiori plant), Ducato commercial vehicle (Val di Sangro) and Alfa 156 and 166 (Pomigliano) will work normally during the holiday period.
However, Fiat is considering adding a third shift at the Panda production line in Mirafiori. The Panda's price has been cut by 23 percent to bring it below the barrier of L10 billion ($5,920).
Rimex plant sell-off
BOULOGNE - Renault will sell its Mexican engine-making subsidiary to a consortium led by Canadian company Linamar.
Renault Industrias Mexicanas SA, known as Rimex, builds the 1.8- and 2.0-liter versions of the F-series gasoline engine. Renault wants to centralize F-series engine production in Cleon, France. Linamar specializes in the manufacture of mechanical components for the auto and aerospace industries.
Coup at Hyundai
SEOUL - Chung Mong-koo, the co-chairman of Hyundai Group, has taken control of Hyundai Motor. His cousin Chung Mong-gyu has been demoted to vice chairman after a boardroom coup. The move came two days after Hyundai finalized its takeover of Kia. Chung Mong-koo is the eldest son of Hyundai's retired founder, Chung Ju-yung.
Daewoo to acquire Samsung car arm?
SEOUL - Samsung may exchange its auto operations business for Daewoo's consumer electronics unit. Samsung chairman Lee Kun-hee wants to 'get out of the car business,' according to press reports. Samsung and Daewoo are discussing the proposed exchange, which is in response to government pressure for leading chaebols to concentrate on core businesses.
Fiat may build SUV
MILAN - Fiat and Mitsubishi plan to cooperate on the production of a new sport-utility, according to press reports.
The proposed deal would reportedly allow Fiat to also produce the sport-utility and distribute it under the Fiat name.
Fiat officials would not confirm the reports.
Record for Porsche
BONN - Porsche AG's pre-tax profit grew 96 percent to DM322.4 million ($194.1 million) for the year ended 30 July. Net profit rose 99 percent to DM277 million. Porsche sold a record 38,000 units of its two cars, the 911 and Boxster, during the period.