Italy Will Help Fiat in Improving Export Capacity image

Fiat and Italy’s government will try to find solutions and improve the company’s manufacturing efficiency, after the automaker announced it will focus on foreign markets.

In August Fiat announced its plan to stop further investments to avoid losses and cut costs in a weak auto market, decision which has made the company the target of criticism from politicians and trade unions, which are concerned about future job losses if the company will decide to shift production to foreign markets were salaries are lower.

Ford’s decision to shift production will mean that the Jeep and Chrysler models will be made for export. This weekend Italy’s Prime Minister Mario Monti and three cabinet ministers held meeting with Fiat’s CEO Sergio Marchionne and chairman John Elkann in Rome. Marchionne said that he doesn’t see the Italian auto market recovering in the following two years and that it is better for the moment to focus on its US unit, Chrysler.

“Fiat also confirmed its strategy of investing in Italy, at the right moment, to develop new products to take full advantage of the recovery of the European market,” the statement said, mentioning research and development as an example.

Italy’s government plans to create a working group which will examine the possibilities for improving Fiat’s export capacity. The automaker will present its future investment plans on October 30th.