Fiat To Close HQ For 8 Days To Save Cash; Italian Gov Foots Bill

By Benjamin Reeves | June 07 2012 6:21 PM

Fiat S.p.A. (Milan: F) plans to close its headquarters in Mirafiori, Italy, for eight additional working days this summer to save €8 million ($10.1 million) following lackluster European profits for the auto company.

REUTERS

Fiat is closing its headquarters for eight days this summer to save money.

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Fiat will save €1 million a day by closing its headquarters, where it employs roughly 5,400 people. Employees affected by the closure will still receive approximately 80 percent of their regular pay under Italy's Cassa Integrazione lay-off program, according to Auto News.

The headquarters will be closed June 14-15, June 20-21, and an additional four days in July, according to Auto News. The eight extra days will be added to the company's normal summer break in August. The Mirafiori facilities house styling, engineering and manufacturing operations for Fiat in addition to administrative and marketing services.

Although Fiat reported profits over $1 billion in the first quarter, they were primarily driven by strong performances by Chrysler Group LLC in the U.S.

Fiat S.p.A. (Milan: F) shares rose 1.05 percent to €3.87 Thursday.