Marchionne Says Alfa Romeo Vehicles Could Be Manufactured Outside Italy image

Fiat might transfer production of Alfa Romeo new models from Italy if Prime Minister Enrico Letta’s government will not fin 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 after the Italian automaker’s new labor agreements were affected by a setback in Italian courts.

Both Alfa Romeo and Maserati are of utmost importance for Fiat’s plan to end losses in the European market by 2016. 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.

“The relaunch of Alfa Romeo will continue for sure,” Marchionne said. “Italy should decide if they want it to happen here or not as Fiat and Chrysler have several alternatives.”

This year the Italian automaker will introduce the Ferrari-powered Maserati Ghibli and the new Alfa Romeo 4C sports car to increase exports of its upscale vehicles in markets outside Europe. But Marchionne said that Fiat needs clear and reliable labor rules before investing in new projects, including new models at the Mirafiori plant. Marchionne said he is willing to meet with the head of the Fiom union for discussions, even if he will not change the contracts.

Source: Bloomberg