Fiat Threatens Again to Transfer Production from Italy image

Fiat CEO Sergio Marchionne said it considers transfering future Fiat, Jeep and Alfa Romeo models production out of Italy, threatening an Italian trade union.

Fiom, the metalworkers’ union, won a legal ruling against the Italian automaker, which refused to give the union permission to represent plant workers in negotiations for more flexible working conditions. According to reports, Marchionne has approved new investments as each plant in Italy has agreed with the new working deals, but that if no agreement will be reached with the unions, the 2015 Alfa Guilia and Maserati SUV might be manufactured in the US, while the Fiat and Jeep small SUV will be built in Serbia.

Earlier this month Marchionne threatened to move Alfa Romeo production of new models from Italy if Prime Minister Enrico Letta’s government will not find solution for labor rules. Fiat said that it will not make any investments in Italy until unions and politicians will adopt reforms aimed at offering manufacturers more flexible work laws.

Fiat plans to make an investment of more than 2 billion euro in these brands to develop 8 new Alfa Romeo models and 6 Maserati models, all to be manufactured in Italy. Both Alfa Romeo and Maserati are of utmost importance for Fiat’s plan to end losses in the European market by 2016.