Marchionne Plans to Manufacture Chrysler Cars in Italy image

Sergio Marchionne plans to build Chryslers in Italy to keep workers on the job and ease the pressure on the US automaker.

Fiat’s CEO is asking the Italian government to cut corporate taxes for exported vehicles, to be able to competitively manufacture vehicles in the country for North America. Marchionne is expected to announce his plans at the end of this week, as well as the restructuring plan for Fiat.

“Export from Italy is a way to use some of the capacity that is in Italy and the exports can go anywhere,” said Mike Manley, the head of Chrysler’s international operations.

For this year Fiat has stopped its investments in Europe, managing to cut costs by 500 million euro and also postponed several new models, as the company expects a 700 million euro loss in the region by the end of this year. At the end of September, Marchionne told Italian Premier Mario Monti about its plans to strengthen Chrysler’s position as an exporter.

“We need to find an agreement quite rapidly, we can’t wait forever,” Marchionne told reporters in London. “We need some assistance; we can’t do everything by ourselves. We must create conditions in Italy to export.”

  • James Joseph

    Thanks Obama, you gave Chrysler to Fiat without terms, and now Marchionne will take our jobs back to Italy. Way to go, literally. Note: you just lost Ohio.