Fiat to spend 20 billion euros to revamp its Italian plants

Article by Christian Andrei, on February 15, 2011

Fiat S.p.A. has made a pledge to spend 20 billion euros ($27 billion) to revamp domestic plants. CEO Sergio Marchionne confirmed this after coming out from a meeting with Italy’s Prime Minister Silvio Berlusconi.

After discussing the investment plan with Marchionne and Fiat Chairman John Elkann, Industry Minister Paolo Romani said last Saturday that Fiat is expanding internationally but “will keep an Italian heart.”

The meeting was attended by Romani, Berlusconi and other members of the government. Last Feb. 4, Marchionne made a comment that caused quite a stir. He had said that Fiat and Chrysler Group may “end up looking like one entity,” and will possibly be based in the U.S.

He later issued another statement to clarify that there has been no decision made yet and that the issue will be dealt with no sooner than 2014. Fiat owns a 25% stake in Chrysler.

Turin Mayor Sergio Chiamparino said after attending the meeting that the “positive evolution of Fiat's plan for Italy will condition the decision” on where the headquarters will be located.

Fiat has set a goal to produce up to 280,000 cars and SUVs a year under the Jeep and Alfa Romeo brands at its Mirafiori plant in Italy, beginning in 2012 as part of its alliance with Chrysler.

Under a deal with unions, workers will work longer hours, take shorter breaks and risk having pay withheld for persistent absenteeism.

The Mirafiori agreement is included in a project to overhaul Fiat's five Italian car plants, where the company seeks to boost annual production to 1.4 million vehicles by 2014 from 650,000 in 2009. On Feb. 15, Marchionne is set to discuss those goals at a parliamentary hearing in Rome. [via autonews - sub. required]

Topics: fiat, italy

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
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