28.07.2010 FIAT HINGES FUTURE OF "FABBRICA ITALIA" ON NEW WORKING PRACTICES

FIAT BRAVO SPORT T-JET 150 CV MODEL YEAR 2011

Fiat said Wednesday that its plans to boost production in Italy have not been ditched after causing a stir last week by saying it would make a new model in Serbia, reports ANSA.

However, the company also told trade union leaders and government representatives that Fabbrica Italia, the plan agreed last year to increase activity in its homeland, could only go ahead if workers accepted change is needed to survive in today's competitive markets.

''We are the only company to invest 20 billion (euros) in the country,'' Fiat CEO Sergio Marchionne was quoted as saying by sources at the meeting. ''But we must have guarantees that the plants can function. 'If the project is just a pretext to leave things as they are, it's right that everyone assumes responsibility for their actions in the knowledge that Fabbrica Italia cannot go ahead and the plans and investments will have to be downsized. At this point we want a yes or a no. Yes means modernising the Italian industrial system. ''No means leaving things as they are, accepting that the industrial system will continue to be inefficient and inadequate for making profits and, therefore, for keeping or increasing jobs''.

Last week Fiat CEO Sergio Marchionne said the Fabbrica Italia will be slowed following tensions with the FIOM union over proposals to introduce flexible working procedures to increase production at a plant near Naples in exchange for making Panda cars there.

FIOM, which is linked to the nation's biggest union CGIL, opposed the accord for the Pomigliano d'Arco plant, but it is going ahead anyway after other unions backed it, as did 62% of workers there in a vote. Indeed, Fiat said Tuesday that it has set up a new company to give it a freer hand in managing the Pomigliano plant. Marchionne reassured the unions that the decision to make the L0, the new vehicle that will replace its Multipla and Lancia Musa models, in Serbia rather than at the Mirafiori plant in the carmaker's Turin home did not spell disaster for the latter.

''The move does not remove prospects for Mirafiori,'' he said. ''There are alternatives to guarantee its volume of production''. Marchionne met Labour Minister Maurizio Sacconi and Piedmont Governor Roberto Cota, government sources said, before the round table with union representatives.
 
Report courtesy of ANSA
 

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