Fiat plans to boost Italy output by 40%

Automaker Fiat SpA plans to boost Italian output about 40% to 900,000 units a year under a restructuring scheme, la Repubblica newspaper reported on Saturday.

Fiat, which owns 20% of US car maker Chrysler, will present the plan to unions in a couple of weeks, the daily said. The scheme is aimed at boosting productivity at its six Italian plants, which lag Fiat factories in Brazil and Poland.

Fiat, Italy's biggest manufacturer, would raise its yearly domestic production from 600,000-650,000 units under the programme, la Repubblica said. It cited speculation in Turin, Fiat's hometown, for the story.

Fiat is scheduled to present its Italian plans to the government next month.

A company spokesman said: "Fiat is not prepared to comment on a plan that has not yet been presented."

Among the reported plan's main points, Fiat would shutter its plant at Termini Imerese in Sicily under the scheme, the daily said. Chief Executive Sergio Marchionne has already announced closure of the factory in 2011 and transfer of production of its Y model to Poland.

The plan includes switching output of about 270,000 new Panda models a year from Poland to Pomigliano, near Naples. Pomigliano also would wind down output of current Alfa Romeo models, la Repubblica said.

The only certainty about Fiat's main Mirafiori plant at Turin is continued output of the Alfa MiTo model, it said.