UPDATE:Italy Government Signals Aid To Fiat Depends On Jobs At Home
07 Mai 2009 - 2:01PM
Dow Jones News
The Italian government Thursday signaled it would continue to
help Fiat SpA (F.MI) as long as the car maker safeguards jobs at
home while it seeks to expand internationally.
"It is crucial that the Italian production system remains
central in a project that would be supported by public incentives,"
Industry Minister Claudio Scajola said.
Fiat needs funds as it seeks to buy some General Motor Corp.
(GM) assets - including Germany's Adam Opel GmbH Swedens's Saab -
and merge them with its auto unit and Chrysler LLC to create one of
the world's largest car companies.
The Italian government in February approved a EUR2.0 billion
package largely aimed at helping the domestic auto sector, in which
Fiat has a 35% stake, by giving drivers incentives to buy new
less-polluting cars. In return, Rome said the auto industry would
have to keep its plants and jobs in Italy.
Opel might close one of its plants if it merges with Fiat, a
senior German official said this week, signaling that Fiat's plan
to create one of the world's biggest car makers could lead to
significant job cuts in Europe.
The potential alliance between Fiat and GM's European operations
could result in job cuts at 14 plants in Europe, La Repubblica
reported on its Web site Thursday.
Gianni Rinaldini, head of Fiat's largest metalworkers union,
said that closing any plant in Italy would lead to "serious social
conflict" and asked the government to hold a meeting with Fiat
management as soon as possible.
Italy's industry minister said he would hold a meeting with Fiat
executives and unions to discuss possible government contributions
and stressed the importance of Fiat's factories to the Italian
economy.
-By Luca Di Leo and Sofia Celeste, Dow Jones Newswires; +39 06
69766923; sofia.celeste@dowjones.com