Fiat may shift Alfa Romeo output out of Italy

Article by Anita Panait, on July 12, 2013

Fiat may shift output of its Alfa Romeo models to outside of Italy if it cannot get clear labor rules in the country. Fiat chief executive Sergio Marchionne remarked that Italy should decide whether they want "it to happen in this environment or not" since Fiat and Chrysler have several alternatives. Marchionne said Fiat will freeze new investments in Italy until it gets a clearer idea of the impact of a court decision that says a part of the country's labor rules are unconstitutional.

Fiat has poured investments at some of its sites in Italy since 2010 in return for concessions from labor unions for more flexible work conditions. The metalworkers' union Fiom, however, did not support the new agreement, and commenced legal actions against Fiat. Italy's constitutional court eventually issued a ruling last week saying that a clause in the country's labor law from the 1970s that allows Fiat to prevent the Fiom from representing its workers violated the constitution.

Marchionne remarked that Fiat "needs clear and reliable rules" before investing in more projects in Italy. Fiat is increasing output of upscale models in Europe, including Alfa Romeos and new Maserati models, as part of its bid to end its losses in the region by 2016. Fiat posted over EUR700 million ($894 million) in losses in Europe in 2012.

Thanks to strong profits at its Chrysler unit, the Italian carmaker avoided losing over EUR1 billion in 2012. Marchionne remarked that he was open to talks with Fiom leader Maurizio Landini to discuss what measures could be taken. Marchionne has requested the Italian government to recommend a solution for the uncertainty caused by the court decision. He remarked that despite the shift, the re-launch of Alfa Romeo "will continue for sure."

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries