Fiat Scales Back Engine Output in Poland

VIENNA –  Fiat Powertrain Technologies Poland is scaling back its production plans for 2012.

The Bielsko-Biala, Poland, plant manufactures 1.3L 4-cyl. diesel and 0.9L 2-cyl. TwinAir gasoline engines. Production totaledmore than 568,000 diesel and 45,000 gasoline engines in 2011.

Originally output of 506,000 diesels was planned for this year. However, that number has been reduced to 410,000 units, resulting in 42 days of downtime in 2012. There already have been 20 production-free days in the plant’s diesel department through the end of May.

The gasoline engine output plan has been reduced from 171,000 to just 72,000 units, translating into 57 days of downtime for the year. Employees already have been off work 33 days during the first five months.

Production of the TwinAir engine started in June 2010. Plans to add the second shift for gasoline engines in March 2012 were cancelled.

The management of Fiat Powertrain Technologies Poland and union organizations active in the plant have reached an agreement on unpaid production-free days in response to reduced output levels earlier this month.

There will be two days of downtime per month between June and September for which the workers will not be paid. As a result of this agreement, no job cuts are planned through the end of this year.

The plant currently employs 1,150 workers.