Fiat CEO Sergio Marchionne Said He Considers Moving Alfa Romeo Production Outside Italy image

Fiat CEO Sergio Marchionne said he considers moving new Alfa Romeo models production from Italy if the labor rules are not cleared up.

“The relaunch of Alfa Romeo will continue for sure,” Chief Executive Officer Sergio Marchionne told reporters yesterday in Turin, where Fiat is based. “Italy should decide if they want it to happen in this environment or not as Fiat and Chrysler have several alternatives.”

Fiat, which controls US automaker Chrysler, plans to increase sales of its upscale models in Europe, including the Alfa Romeo sports cars and the $130,000 Maserati Quattroporte, in an attempt to end losses in this market by 2016. In 2012 the Italian automaker’s European business reached a loss of more than 700 million euro and without Chrysler’s help the sum would have surpassed 1 billion euro.

Marchionne said that Fiat will not make any other investments in Italy until the labor rules will be clear and reliable. Fiat said that the 700 million euro investment with Peugeot for new vans will go on, but that any other investments will be cleared from the list, including manufacturing new models at the Mirafiori plant in Turin.

Source: Bloomberg