Fiat CEO Sergio Marchionne told a parliamentary hearing last Tuesday that the alliance with Chrysler was vital for the group's future. He reiterated that he is hoping to maintain a strong presence in Italy under a plan to raise productivity. Marchionne, who also serves as CEO of Chrysler, said that not only did Fiat save Chrysler but that “Chrysler is determining for the group's future.”
He added that the company is strengthening its product range and “widening [its] horizon."
Last Saturday, Marchionne had met with Prime Minister Silvio Berlusconi where the Italian-Canadian manager aimed to reassure the government about the carmaker's commitment to its $27 billion Italian investment plan.
Last February, Marchionne caused outrage in Italy when he suggested that Fiat's headquarters will transfer to the U.S. after merging it with Chrysler.
On last Tuesday’s hearing, Marchionne said there has been no decision yet on the Turin-based group's base but he admitted that there would be a governance problem after the listing of Chrysler. Fiat expects that within two or three years, it will accomplish a full merger with Chrysler after a deep restructuring. [via autonews - sub. required]