Fiat announced it needs to constantly review its investments in Italy and its product portfolio to bring the automaker in line with continuously changing market trends.
“The European car market is in serious crisis and the Italian market has collapsed to 1970s levels. It is therefore impossible to refer to a project that was born two and a half years ago, ” Fiat said in a statement.
Chief Executive Sergio Marchionne made this announcement after trade unions and politicians expressed their concern and doubt regarding the company’s “Fabbrica Italia” domestic investment plans. in October 2011 Fiat stopped using this term as it had become interpreted as “an absolute commitment of the company”.
Fabbrica Italia was first introduced in 2010 and it included investments of 20 billion euro ($25.8 billion). Fiat, which controls Chrysler, has already been affected by the low sales, decreased demand and excess capacity caused by the debt crisis in Europe. Despite the rumors that the company plans to close plants in Italy, Fiat announced it will avoid closing its factories and will only reduce the working hours at its plans in the home market. The automaker will focus on other markets such as Brazil and the US, which show signs of recovery.