MILAN/TURIN: Italian carmaker Fiat plans to start making cars at its idled Italian factories to sell in the United States, a source close to the matter said on Monday, as the government mulls fiscal and other incentives to help the group's exports.
Chief executive Sergio Marchionne, who also runs majority-owned US carmaker Chrysler, met Italian Prime Minister Mario Monti on Saturday to discuss how Fiat can keep its factories open at a time when car sales have plunged to their lowest level in 40 years.
A joint statement after the five-hour meeting said Fiat would refocus its domestic business model to making cars in Italy for export outside Europe but little detail has emerged from the talks.
"We may introduce mechanisms for Fiat and for the entire manufacturing sector, destined to make exports easier either in fiscal terms or otherwise," Industry Minister Corrado Passera, who attended the meeting with Marchionne, said on Monday.
A person familiar with the situation said Fiat would use loss-making Italian factories to produce cars to sell in the United States, where the market is growing and Chrysler's factories are already running at full capacity.
Italian factories could make Jeep and Chrysler models, the person said. No firm commitment or timetable has yet emerged for the export plan.
Fiat will no longer release a detailed strategy on products and plants on Oct. 30 as previously planned, two sources close to the matter said. Fiat declined to comment.
Marchionne reiterated the company's targets on Monday at an industry conference in Turin where he said he does not see the European car market recovering until at least 2015.
"The European car market is a disaster. It has plunged off a precipice that doesn't seem to have bottomed out yet. The prospects are anything but rosy," Marchionne said.
indiatimes.com
Chief executive Sergio Marchionne, who also runs majority-owned US carmaker Chrysler, met Italian Prime Minister Mario Monti on Saturday to discuss how Fiat can keep its factories open at a time when car sales have plunged to their lowest level in 40 years.
A joint statement after the five-hour meeting said Fiat would refocus its domestic business model to making cars in Italy for export outside Europe but little detail has emerged from the talks.
"We may introduce mechanisms for Fiat and for the entire manufacturing sector, destined to make exports easier either in fiscal terms or otherwise," Industry Minister Corrado Passera, who attended the meeting with Marchionne, said on Monday.
A person familiar with the situation said Fiat would use loss-making Italian factories to produce cars to sell in the United States, where the market is growing and Chrysler's factories are already running at full capacity.
Italian factories could make Jeep and Chrysler models, the person said. No firm commitment or timetable has yet emerged for the export plan.
Fiat will no longer release a detailed strategy on products and plants on Oct. 30 as previously planned, two sources close to the matter said. Fiat declined to comment.
Marchionne reiterated the company's targets on Monday at an industry conference in Turin where he said he does not see the European car market recovering until at least 2015.
"The European car market is a disaster. It has plunged off a precipice that doesn't seem to have bottomed out yet. The prospects are anything but rosy," Marchionne said.
indiatimes.com
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