Italy: Fiat presents industrial program to government and unions

“We have an ambitious plan for Fiat, especially in Italy” announced Sergio Marchionne, Fiat managing director, when presenting, on December 22, Fiat’s industrial plan for Italy in 2010-11 to the government and unions. He pointed out to the “need to reconcile industrial costs and social responsibility” because while “mere economic calculations would have unwanted painful consequences,” “attention to the social aspect only would lead to the destruction of the company” he said. Asserting the need to solve the issue of “the great gap in workforce use between Fiat’s Italian and foreign establishments,” he declared that the multinational would invest €8 billion into research and development, two thirds of which will be awarded to Italian production. Fiat granted the request made by unions and the government (see our dispatch No. 091103) to increase production in Italy, and said that, in 2012, the number of cars produced would go from 650,000 to 900,000 units. 11 new models are also going to be produced. Fiat maintains the Pomigliano d’Arco plant, which unions were afraid would close. This plant will produce the new Panda, in spite of the “surplus production problem.” For the Mirafiori and Melfi sites, which are currently “working well,” current production levels will be kept, while the Cassino plant will produce the new Giuletta.
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Italian production will be increased but the Termini Imerese Sicilian factory will be closed. This is the core of Fiat’s industrial program for the next two years in Italy, which Sergio Marchionne, Fiat managing director, presented on December 22 to the government and unions.

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