Italian carmaker Fiat would perform better without its loss-making Italian plants, Chief Executive Officer Sergio Marchionne told an Italian TV show on Sunday according to Italian news agency ANSA. "Fiat could do more if it could cut off Italy," from its results, the outspoken Marchionne was quoted as saying in a pre-recorded interview with TV show "Che tempo che fa".
The CEO added that not a single euro of the 2 billion euros of trading profit that Fiat is targeting for 2010 would come from Italy, where all Fiat car passenger plants are loss-making.
Fiat, Italy's biggest industrial group, has pledged to invest billions of euros in Italy if it gets more labour flexibility at its Italian factories, where production is more expensive than at some of its foreign plants. Europe's No 6 carmaker, which owns 20 percent of US-based Chrysler, surprised analysts on Friday as it upgraded its 2010 guidance for trading profit well above forecasts.
Marchionne, who has said he will close down Sicily's Termini Imerese plant, has won backing from a majority of workers at Fiat's Pomigliano D'Arco plant to introduce some landmark changes to the national labour contract. However one key union opposes the plans. If the new working agreement is implemented, Fiat will manufacture its new Panda car at the Pomigliano D'Arco plant.