ROME - Italian car giant Fiat has said it will cut 1,500 jobs in Poland to match falling demand.

 The announcement was made to trade unions in light of ‘market trends” and ‘negative expectations for the future’ in Bielsko Biala on Monday. The layoffs will be made at the carmaker’s plant in the southern city of Tychy, which makes the popular Fiat 500, the Lancia Ypsilon and the Ford Ka. Total production at the plant will be less than 350,000 this year, compared with 600,000 in 2009, and predictions for next year are lower still.

 "Current market conditions and the negative outlook represent a major challenge for Fiat Auto Poland," the carmaker said. The company explained to trade unions that the significant reduction in production volumes necessitated scaling back activity at the factory from three to two shifts, and this change would result in 1,500 redundancies.

 Poland’s central bank has since expressed fears that Fiat’s plans will cause other international companies to do the same, adding to the country’s rising unemployment.

 Central bank Governor Marek Belka said on Tuesday, “Those layoffs will produce further layoffs - the ripple effect will be much bigger on the region and car parts suppliers.’ Fiat Auto Poland intends to start legal proceedings for the job cuts as soon as possible.

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