Saturday, September 22nd, Fiat CEO Sergio Marchionne will meet Italian Premier Mario Monti to discuss the company’s strategy plan.
A few days ago Marchionne was urged to clarify his strategy plan in Italy, given Fiat’s importance for the country’s auto market. Fiat is the most important industrial concern and Italy’s largest employer. In an interview published Tuesday in an Italian newspaper, Marchionne said that he will not move Fiat away from Italy but that he has to reconsider investments and introducing new cars in the country, due to the contracting European market.
“In this dramatic situation, I have not spoken about firing, I have not proposed closing plants, and I have never said I wanted to go away,” the newspaper quoted Marchionne as saying from Detroit.
Fiat has managed to avoid closing plants by decreasing capacity to meet demand and keeping its workers on extended periods of short-term layoffs with reduced pay. Marchionne said he will offer details about the strategy plan and future investments in Italy, after he will report the third quarter earnings on October 30th.From January to June auto sales in Italy have dropped 20% and continue to fall. Over the summer the auto market in Europe decreased 7.5% in July and 8.5% in August.