DE TOMASO INDUSTRIES TO CLOSE MILAN PLANT
DE TOMASO INDUSTRIES TO CLOSE MILAN PLANT RED BANK, N.J., Oct. 29 /PRNewswire/ -- De Tomaso Industries, Inc.
(NASDAQ: DTOM) principal owner of the maker of the Maserati luxury automobile, announced that Maserati would close its manufacturing facility in Milan, Italy, at the end of the year.
Alejandro De Tomaso, chairman of the board of De Tomaso Industries and of its Maserati subsidiary, said that continued operations in Milan could no longer be justified in the face of mounting losses at the plant. The market for luxury vehicles in Europe generally, and in Italy in particular, has been depressed in recent years and the Italian car-maker was unable to absorb further losses. The Milan factory also manufactured Innocenti minicars. Production will be discontinued no later than year end. Maseratis will continued to be manufactured at the company's Modena facility. Approximately 1,100 Italian auto workers will be idled by the plant closing. The plant closing itself is not expected to restore Maserati to profitability, although future operating losses should be markedly reduced, Mr. De Tomaso said. The company is continuing in talks with Fiat Auto, S.p.A. over compensation for Fiat's termination of an agreement to purchase Maserati-assembled "Panda" models sold by Fiat. Maserti has not determined how the Milan site will be used after the closing. Mr. De Tomaso said that the Italian auto maker, with the continuing support of Fiat, will focus its operations on the market niche for expensive, high performance luxury automobiles. Maserati continues to build its Shamal, Spyder and Ghibli models and the Barchetta racing car. -0- 10/29/92 /CONTACT: David Lerner of De Tomaso Industries, Inc., 212-735-8609 or Charlie Kouns for De Tomaso Industries, Inc., 804-344-3862/ (DTOM) CO: De Tomaso Industries, Inc. ST: New Jersey IN: AUT SU:
MM -- CH006 -- 6730 10/29/92 15:52 EST
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|Date:||Oct 29, 1992|
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