Slow Fiat 500 Sales Leads to Layoffs

Slower than expected sales of the Fiat 500 has prompted to Chrysler to suspend production of the 500’s 1.4L engine at Chrysler’s Global Engine Manufacturing Alliance Plant in Dundee, Michigan.

According to the UAW, more than 100 of about 400 hourly workers were laid off at the beginning of the month, although Chrysler claims that only about 30 workers are currently laid off.

Automotive News reports that Chrysler currently has a 184-day supply of Fiat 500 coupes and cabrios.

Chrysler spokeswoman Jodi Tinson stated that Chrysler is “very pleased with the progress we are making with the North American launch of the Fiat brand.”

Chrysler originally wanted to sell 50,000 units this year, but through the end of October only about 16,000 units had been sold. The third 500 model, the 500 Abarth will be unveiled this week at the LA Auto Show.

Automotive News