Italian truck maker Iveco is going to shut down five European plants by the end of this year. Germany looks to be hit hardest by the closures - with three production facilities and hundreds of jobs in the firing line.
Fiat's truck subsidiary Iveco on Monday confirmed plans to close five of its European production facilities by 2013. The Italian company said it would have to shut down its plants in Chambery in France, Graz in Austria as well as three locations in Germany.
The German plants affected by Iveco's cost-saving and restructuring drive are in Weisweill, Görlitz and Ulm.
Iveco Chief Alfredo Altavilla added, though, that the Ulm site will be replaced by a centralized unit for the production of fire trucks.
Waiting for better business climate
Europe-wide, the planned closures would affect 1,075 employees, said the Italian truck maker which belongs to the Fiat Industrial Group.
"These are painful closures, but they will boost our overall business," Altavilla said in a statement. "We have not however cut our investment, and when the markets recover, we will be ready."
Iveco reported the closures would not affect earlier plans to invest 500 million euros ($631 million) in facilities in Spain and hire 1,100 people there over the next few years. The first 500 of these new staff were to take up their work in the course of 2012.
hg/msh (Reuters, AFP, dpa)