Fiat Asks Italian Government to Reduce Taxes on Exported Goods image

Recently Fiat has asked Italy’s government to help the automaker with its plans to manufacture Chrysler vehicles in the country for export to North America.

Fiat hope that the government will agree to reduce the federal corporate taxes on exported goods, a move with will help the automaker proceed with its plan. On October 30th Sergio Marchionne is expected to unveil this plan to increase exports, as well as a new restructuring scheme for Fiat, including manufacturing the Dodge Dart compact sedan, together with the Alfa Romeo Giulietta at the Cassino facility near Rome.

Sergio Marchionne has reassured officials and labor unions that he will not close plans in Italy, and said that this plan to manufacture vehicles for export will boost productivity at these plans, which are currently running at 50% of capacity, and will help Italian workers keep their jobs.

“Export from Italy is a way to use some of the capacity that is in Italy and the exports can go anywhere,” said Mike Manley, the head of Chrysler’s international operations.

For this year Fiat has stopped its investments in Europe, managing to cut costs by 500 million euro and also postponed several new models, as the company expects a 700 million euro loss in the region by the end of this year.