Rome adds to pressure on Fiat over investment plan

17 Sep, 2012

The Italian government is calling on Fiat to clarify its commitment to Italy after the carmaker reiterated its multi-billion-euro investment plan for its home country should not be interpreted as an absolute pledge.
The request by Industry Minister Corrado Passera and Welfare Minister Elsa Fornero follows criticism of Italy's biggest industrial group from unions and a prominent Italian businessman after Fiat restated its position on Thursday.
"It is right, important and urgent that (Fiat) gives some clarification to the market and to the Italian people," Passera told reporters on Saturday. "We will do whatever is possible to ensure that Fiat's commitments towards Italy are honoured."
Fiat Chief Executive Sergio Marchionne launched the 'Fabbrica Italia' plan in 2010, vowing to invest 20 billion euros ($26.3 billion) in Fiat and sister company Fiat Industrial over five years in exchange for, among others, more flexible labour rules at its loss-making Italian plants.
Fiat, which controls US car group Chrysler, said on Thursday that dire market conditions make it unrealistic to expect its original project would remain unchanged, triggering a political storm in Italy, Fiat's main market.

Read Comments