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To: Les H who wrote (137993)	12/10/2001 6:58:00 PM
From: maceng2	Respond to of 436258

Fiat Auto to cut 6,000 jobs Demand for Fiat's cars has fallen sharply Car manufacturer Fiat Auto has said it will cut 6,000 jobs outside Italy over the next two years as part of a big shake-up of its business and warned it will make a loss this year. Roberto Testore has resigned as chief executive of Fiat Auto, a statement from the board of the car firm's parent group Fiat said. Fiat is Italy's biggest manufacturer and the car firm, Fiat Auto, accounts for 46% of its sales but only contributed 5.1% of its operating profits last year. Fiat said it will either close or restructure 18 of its factories over the next two years, two of them in Italy and 16 abroad. Fundraising Europe's fifth biggest car-maker also revealed a plan to raise money to cut its huge debts by selling new shares. It hopes to raise 1bn euros ($888m) to reduce its $6.6bn debt burden. Fiat Auto's new chief executive will be Giancarlo Boschetti, who heads the truck-making business Iveco. Argentina loses Iveco It did not say which plants would be closed as a result of the restructuring plan. But the announcement contained bad news for Argentina, currently mired in a four year recession and struggling to gain a fresh loan from the International Monetary Fund to avoid a debt default. Iveco is to move its operations from Argentina to Brazil. This is Fiat Auto's second restructuring announcement in as many months. In early October, the car firm said it would cut production by 100,000 cars in 2001 and reduce costs by up to 10% by the end of 2002. That time it said layoffs would be temporary. news.bbc.co.uk