TURIN -- Fiat's new business plan, due to be presented at the end of June, will probably boost efficiency without sacrificing jobs at the Italian carmaker, Fiat's Chairman Umberto Agnelli said on Thursday.
The much-awaited plan is vital to the future of the 104-year-old carmaker which reported its operating loss widened to 342 million euros in the first quarter. Three credit rating agencies have cut its debt to "junk".
"(The plan) should manage to maintain the employment at a maximum level while making the company efficient so as to produce the economic results which shareholders are expecting," Agnelli told shareholders of Ifi, one of his family's holdings.
Agnelli reiterated that the plan would be presented at the end of June.
Chief Executive Giuseppe Morchio, Fiat's fourth CEO in less than a year, has said the plan would focus on innovation, cost control and customer care.
Analysts have said Fiat would have to cut jobs because its Italian labor, about half of the carmaker's workforce, is costly and plants are running at less than 70 percent capacity.
Fiat had to battle with Italy's government and unions to slash about 11,000 jobs last year.