NF500 / brazil

According to a report published today in the Guardian, Fiat is being widely tipped to struggle to reach its own performance targets as the global economy slows. This news comes in spite of the success of the Fiat 500 in both terms of sales, and national and international awards.

The article makes interesting reading, with most analyst sources citing Fiat Group’s heavy reliance on two markets, those in Italy and Brazil, as their main achilles heal. It is of note though that
Chief Executive Sergio Marchionne is thus far sticking to Fiat’s original, strong forecasts, stating that

I’m 56 and I’ve never had to change a forecast so far

Read the full report on the Guardian website.

Reuters is reporting that workers in Poland, where Fiat is building the new version of the Cinquecento model, plan to call a global strike if they do not get a pay raise, according to a report in Polish newspaper Rzeczpospolita on Friday. Workers at the Tychy plant have asked Fiat to raise their minimum monthly wage to 2,800 zlotys ($1,008) from 1,435 zlotys, saying they had the support of workers in Italy and Brazil for a one-day global strike if needed.

If we work so well and are able to work even better and raise our productivity, then we have to get more money,

said Rajmund Pollak, vice president of the Solidarity union in Tychy.

The union has given Fiat until July 13 to respond.

At a news conference on Thursday, Fiat Chief Executive Sergio Marchionne responded to a question on wages from a Polish reporter by saying workers’ demands would be a issue that the auto industry as a whole would have to confront.

At 1335 GMT, Fiat shares were up 3 percent at 23.26 euros, after earlier reaching their highest level since September 2001 at 23.41 euros.