Fiat to Shut Alfa Engine plant, Buy GM Motors
Reuters
Wednesday February 23rd, 2005
http://www.atlasf1.com/news/report.php/id/15366/.html

Italian carmaker Fiat plans to close an Alfa Romeo motor plant near
Milan and will instead power some of its sporty models with engines
made by former partner General Motors, unions said on Tuesday.

Fiat's Powertrain unit announced its decision to workers, who reacted
by throwing insults at Fiat Chairman Luca di Montezemolo.

"Powertrain told us today that Alfa Romeo engines will no longer be
made in Arese. The assembly lines will be dismantled and the
six-cylinder Alfa Romeo motor will be replaced with an engine GM
produces in Australia," unionist Vincenzo Lilliu said.

The decision comes 10 days after Fiat and GM dissolved a five-year
alliance and two joint ventures in powertrains and purchasing but said
they would keep buying each other's engines.

GM benefits from the deal as it still has access to Fiat's small
diesel engines while Fiat, which mainly sells smaller cars, can use
GM's big petrol motors for larger vehicles.

Unionists have long been fighting the gradual closure of Alfa Romeo's
historic plant in Arese, north of Milan, as Fiat moves more car
production to its huge, underused plant in Turin, and south to a
factory near Naples.

On Tuesday, Lilliu and other members of the small but aggressive Slai
Cobas union attacked di Montezemolo for banging the latest nail in
Arese's coffin.

"You should be ashamed of yourself for taking engines away from Arese.
And you call yourself an enlightened businessman!" they shouted as di
Montezemolo left a meeting.

The unions said the decision would probably mean 800 workers currently
on temporary layoff would now lose their jobs once for all, leaving
only 400 people working in Alfa Romeo's style centre at Arese.

In December, Fiat-GM Powertrain said it would lay off 706 workers as
it halted production of old engines that no longer met environmental
standards and started making new replacement motors in Latin America.

Published at 14:06:04 GMT