Fiat Auto sees overcapacity, no early put on GM

PARIS, Sept 25 Reuters reported that Fiat Auto Chief Executive Giancarlo Boschetti said on Wednesday the company was operating at 20 to 30 percent excess capacity but did not see an early exercise of its put option to sell the remaining 80 percent of the unit to General Motors Corp .

"We have 20 to 30 percent overcapacity," Boschetti told reporters at an automotive conference ahead of the Paris auto show. "Our cost structure is not ideal...we are in the midst of a massive cost reduction programme."

He said Fiat was working on ways to reduce costs further and did not rule out further job cuts. When asked whether Fiat Auto would adjust its employees to match capacity, he said, "Who knows?"

Asked whether Fiat SpA would seek to bring forward its put option to sell the rest of its auto unit to General Motors, currently due to take effect in 2004, he replied, "No from what I understand."