Major car brand announces closure of iconic factory in Poland after 75 years with 450 staff set to lose their jobs
AN ICONIC car factory has announced it will stop production after 75 years with more than 450 employees set to lose their jobs.
Fiat will close its manufacturing facility in the Polish city of Bielsko-Biala which gave the world the famed Fiat 126, also dubbed as "Maluch".
The FCA Powertrain plant, which has operated since 1948, is being put to liquidation from February 2024.
The factory is owned by Stellantis - the corporation formed from the merger of Fiat Chrysler and Peugeot Citroen.
A trade union spokeswoman, who represents Polish Fiat workers, told local newspaper Dziennik Zachodni that the closure was expected.
She added that 300 employees had already been dismissed last year.
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The Metalworkers Trade Union, which operates at the factory, has issued a statement, saying the new EU restrictions on vehicle emissions are behind the decision.
"The reason for the liquidation is the introduction of regulations by the European Commission on internal combustion engine emissions and the decrease in orders for engines," they added.
The union said the resultant redundancies would cover the entire 468-strong staff and would be implemented from February to December 2024.
FCA Powertrain's management announced that, together with the trade unions, they will figure out solutions to provide the employees with "the best possible conditions needed to go through the process of professional change".
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Stellantis assured that it will offer former employees jobs at its other production facilities in Poland if they express interest in the proposition.
During the communist rule, the state-owned plant produced cars under licence from Fiat, including the iconic "Maluch" model which translates to "little one".
In 1992, the facility was privatised and taken over by Fiat.
In 2003, FCA Powertrain was formed by Fiat and its strategic shareholder at the time - General Motors.
Since then, the plant has produced more than 7.3 million engines, including two models that have won “International Engine of the Year” - the 1.3-litre MultiJet turbodiesel engine in 2005 and the TwinAir engine in 2011.
Poland was the only country to oppose the EU ban on the sale of new petrol and diesel cars from 2035.
The Green deal, which imposes a 100 per cent reduction in CO2 emissions by the cut-off date, has been approved in March last year.
