Today, January 30th, Fiat’s bosses said that they had to make ‘difficult choices’ to keep production in Italy.
“Despite market troubles, we have made difficult choices to continue producing in Italy,” Fiat chairman John Elkann said at the opening of a new plant for the company’s luxury brand Maserati.
Fiat’s CEO Sergio Marchionne said that even if it is extremely hard for the automaker to keep producing cars in Italy amid the European drop in demand and financial crisis, the company will not close any plants in its home market. Last year Fiat warned that the difficult situation in Europe might force it to close one of its five plants in Italy.
“The European car market may not have hit bottom,” Marchionne said at the same event on the outskirts of Fiat’s hometown of Turin in northern Italy. “The results are in line with expectations. The company is doing well.”
Fiat’s third-quarter results were double compared with what they were during the same period in 2011, but only thanks to Chrysler’s results and the luxury sales in booming markets such as China. Today, Marchionne is expected to report 2012 earnings and analysts expect Fiat to miss its debt target, making it harder to pay for the automaker’s ambitious expansion and increase its stake in Chrysler.