New Delhi, July 10: Italian automaker Fiat SpA has decided to bring in fresh money into its loss-making Indian subsidiary to restructure capital and reduce losses even as it undertakes a global restructuring, including slashing 12,300 jobs and shutting 12 factories worldwide, Fiat India managing director Alberto Montanari said. This move would also facilitate the local unit to break- even on its investments of Rs 2,000 crore next year and turn profitable by 2005, Montanari said on Thursday.
"During my recent Italy visit, it has been decided to bring in fresh money into India. We should break-even next year, even if we sell just 20,000 cars. After that, we will become profitable," he said in an interview.
He did not disclose the total accumulated losses of Fiat India or whether the parent company would wipe out the losses, since it started operations in 1997.
Fiat Spa had late last month announced a massive restructuring plan, which involved cutting jobs and closing 12 factories to tide over two successive years of losses.
Fiat Italy had earlier reaffirmed its commitment to the Indian market saying that India, China, Brazil and Turkey were its most important markets.
Bureau Report