La Repubblica newspaper reported that automaker Fiat SpA plans to boost Italian output by about 40% to 900,000 units a year under a restructuring scheme.

As per report, Fiat, which owns 20% of US car maker Chrysler, will present the plan to unions in a couple of weeks. The scheme is aimed at boosting productivity at its 6 Italian plants, which lag Fiat factories in Brazil and Poland.

The report says Fiat would raise its yearly domestic production from 600,000 to 650,000 units under the programme. 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 that "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 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. The only certainty about Fiat's main Mirafiori plant at Turin is continued output of the Alfa MiTo model.

(Sourced from la Repubblica)