Fiat may close its engine-manufacturing plant in the southern Polish town of Tychy as part of a cost-cutting exercise, according to Wednesday media reports.

The Italian car maker, however, has denied claims published in Frankfurter Allgemeine Zeitung (FAZ) that Fiat will close 10 European factories and cut around 18,000 jobs. The plants would be closed between 2011 and 2016, according to FAZ, which quoted a 103-page document dated April 3, claiming it was an internal Fiat strategy plan.

Fiat said the report quoted by FAZ did “not come from Fiat and is not part of any plan prepared by the company."(RG)

Sources: Thomson Reuters; Dziennik