Fiat is beginning to offer workers at its Kragujevac (Serbia) facility voluntary redundancy packages as production rates slow at the site, reports SeeNews. Zoran Markovic, a trade union representative, told the news service yesterday (28 June) that letters have already been sent to staff with the aim of cutting its headcount by one-third by August. The deadline for enrolling in the scheme set by factory management, unions and the Serbian government is 8 July.
 

Significance: Reports surfaced earlier this month that staffing levels would need to be reduced by 900 from the 3,100 people it currently employs, as demand for the Fiat 500L has struggled to meet the levels expected by the automaker and the capabilities of the plant. The automaker will end one shift. The deal being offered to workers, according to Markovic, includes severance pay, unemployment benefits and an additional fixed payment of EUR3,000 (USD3,316), and workers with between three and five years experience will get a total of up to EUR5,000. IHS Automotive currently forecasts that output of the 500L will fall from 84,000 units to 82,000 units. However, it had been expected to be bolstered in 2017 with a new C-segment crossover going into production, which will peak at 130,000 units by 2020.