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Fiat tumbles, 6,000 jobs go
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December 11, 2001: 4:50 a.m. ET
Italian auto attempt to restore profits, to sell assets, issue bonds and shares
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LONDON (CNN) - Fiat, Europe's fifth-largest car maker, saw its stock drop sharply on Tuesday after announcing plans to slash 6,000 jobs and cut losses.
Its stock tumbled 11.5 percent to  16.86 in early Milan trading. The stock has lost more than 35 percent of its value over the year and hit a low of 15.07 on September 21.
Italy's biggest manufacturer said late on Monday it will sell assets worth 2 billion ($1.8 billion), sell shares worth 1 billion and raise $2.2 billion from selling bonds to reduce its debt mountain of 7.5 billion.
The bonds are exchangeable for 32 million shares in General Motors, the world's largest automaker. Fiat owns 6 percent GM (GM: down $1.25 to $50.34, Research, Estimates), which the Italian company exchanged for a 20 percent stake in Fiat Auto.
Fiat now expects to post net losses for 2001 after saying a month ago that results would be sharply below those of 2000.
Fiat Auto Chief Executive Roberto Testore resigned on Monday and will be replaced by Giancarlo Boschetti, currently chief executive of Fiat's truck unit Iveco, who will oversee the reorganisation of Fiat Auto into four business units; Fiat/Lancia, Alfa Romeo, International Development and Services.
Turin, Italy-based Fiat expects to spend 800 million on restructuring its businesses in 2001, with its plans to cut 6,000 jobs abroad between 2002 and 2004.
It also plans to close eight plants during the period, of which two are in Italy, in addition to the 10 plant closures already announced.
Fiat had hoped to sell its components unit Magnetti Marelli this year, but has found demand limited for the car parts business, as well as its cars, after the September 11 attacks added to slowing economies worldwide. 
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