After more
than four decades of assembling models such as Fiat's
126, Panda and Punto, the curtain has finally come down
on Fiat Group production at Termini Imerese in Sicily,
with the final car, a Lancia Ypsilon, having just rolled
off the lines.
Fiat’s withdrawal from
the plant is the final chapter in a protracted story,
with the factory’s future a key bone of contention
between the company’s management and workers as long ago
as 2002. Although Termini Imerese is far from alone
amongst Fiat’s factories in operating far below its
maximum capacity, its geographical location on the
island of Sicily meant its lack of capacity utilisation
– less than 40 per cent of its potential 140,000 units a
year – was combined with increased transportation costs
for models produced there. According to Fiat, it was
this fundamental obstacle – which the company said
increased costs by 1,000 euros per car – which sealed
the future of the plant.
The future of the
plant is now in the hands of DR Motor, an independent
Italian carmaker owned by the Di Risio family, which
assembles cars based on components supplied by China’s
Chery Automobile. According to a report in The Wall
Street Journal, the new venture will hire 1,312 out
of the 1,600-odd people who had previously worked at the
plant under Fiat. The success of this venture remains to
be seen, however; while the company has stated it aims
to be producing some 60,000 cars annually within four
years, others have suggested these claims are wildly
optimistic and that the company is in fact using the
deal – which includes forty million euros in public
grants – to prop up its own finances.
Meanwhile, aside from
the Fiat employees set to lose their jobs, a further 800
people are understood to work for nearby suppliers.
Their future is likewise uncertain, as Sicily remains
one of Italy’s poorest regions, with a youth
unemployment rate some three times higher than that in
the north.
Indeed, the story of
Termini Imerese is inextricably bound up in the history
of Sicily itself. Opening in 1970, Termini Imerese was –
like Alfa Romeo’s Pomigliano d’Arco plant near Naples –
a product of contemporaneous Italian Government policy,
which aimed to spur job creation and development in the
country’s rural south. It sought to do this by
diversifying automotive production outside its
traditional northern strongholds of Turin and Milan,
with the hope it would help accelerate the south’s
industrialisation. The success of this policy proved
mixed, however, due to the lack of related
infrastructure surrounding the plants, as well as the
lack of training afforded to southern workers, which
adversely affected the quality of the factories’ output.
Nevertheless, despite
these difficulties, Termini Imerese was granted
production of a number of key Fiat models over its
existence. It originally built the last variants of the
‘nuova 500’ before switching to its replacement, the
126, from 1975 onwards. When Italian production of rear-engined
Fiats ceased in 1979, the plant was retooled to produce
one of the carmaker’s most successful models, the
first-generation Panda. Through this period, the plant
prospered in line with Fiat’s own success, employing
some 3,200 people at its height and producing over two
million examples of Giugiaro’s utilitarian supermini.
During the 1990s, as a
result of increased automation and workforce
reorganisations, its headcount continued to decline.
With Panda production wrapping up in 1992, the plant was
assigned another of Fiat’s most successful models – the
first-generation Punto. In conjunction with a brand-new
plant at Melfi, Termini produced two generations of
Fiat’s supermini, switching in June 2005 to become the
sole factory for the (Punto-based) Lancia Ypsilon. The
plant’s fate was ultimately sealed when Fiat announced
it would build the new-generation Ypsilon in its Polish
Tychy plant.