FIAT: Relocation of production to Serbia will not be harmful to Mirafiori factory

Source: Beta Wednesday, 28.07.2010. 15:59
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Fiat CEO Sergio Marchionne assessed today (July 28, 2010) that relocation of production of the company's new automobile models to Serbia would not be harmful to Italian Mirafiori factory in Torino.

- Production of LO monovolumenes is not going to harm Mirafiori factory - Marchionne said at the meeting of the officials of Fiat Group and the union in the premises of regional authorities of Piedmont in Torino where the headquarters of that large Italian automotive manufacturer is situated.

Sergio Marchionne announced at the end of last week that the company would move production of new models - Fiat Idea and Lancia Musa - to Serbia because it had experienced problems with the unions in Italy, while Kragujevac can provide conditions for undisturbed and safe production.

- Marchionne explained that Fiat had made the decision to relocate production of two new models to Serbia due to limited deadlines for commencement and preparation of production - Italian daily newspaper Republica wrote.

- We had to start implementation of the project as soon as possible, for both economic and industrial reasons. We had to choose the unit that would guarantee satisfaction of all market needs - said Fiat CEO.

That decision does not deprives Mirafiori factory in Torino of the opportunity to employ its capacities since, as he explained, there are alternatives for maintenance of production in that unit.

- The range of products envisaged by the Group's five-year plan is so broad that there is plenty of other options available. If we have in mind Fiat and Chrysler models, then there are other alternatives that can enable the same result and guarantee the anticipated production in Mirafiore factory - said Marchionne.

The today's meeting was attended by Italian Minister of Labor Maurizio Sacconi, President of the Piedmont region Roberto Cota, and Mayor of Turin Sergio Chiamparino.

Guillermo Epifani, the Secretary General of CGIL (Italian General Confederation of Labor), accused Fiat's management of making the decision on relocation of production to Serbia because of economic profit, although the company has no business problems.

The Mayor of Turin warned that the industrial plan, from the economic viewpoint, "would be unsustainable" if the production in Mirafiore factory was halted.

After the meeting, however, he said that he had been assured that there were plans for production in Mirafiore factory and that he was satisfied with the outcome of the talks.

- Production of some other Fiat models, which may be more suitable for the unit that represents the Group's headquarters, is in the pipeline as well - said he.

Minister of Labor Sacconi also confirmed that the meeting was "useful and constructive" and that it would enable further "consolidation and development of production capacities in Fiat's factories in Italy".

At the today's meeting, Fiat CEO also spoke about the Group's plans concerning the Factory Italy project, which is going to be, as he explained, "the only company to invest 20 billion euros in that country".

- We are not threatening, but we are not ready to endanger survival of the company. We must receive guarantees that factories can function normally - said Marchionne.

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