With not a single euro of Fiat’s profit coming from its Italian operations, boss Sergio Marchionne was able to talk tough in the run-up to the vote on the new labour contract at its Mirafiori plant in Turin.
He threatening to move production abroad, pointing out that workers at a Fiat plant in Poland are three times as productive as those at Mirafiori.
The alternative was an expansion plan which includes doubling production in Italy by 2014 as part of a larger twenty billion euro investment in Fiat facilities in the country.
An essential part of Marchionne’s vision is Chrysler. Fiat recently increase its stake in the US carmaker to 25 percent and the chief executive has said he hopes to eventually own the majority of Chrysler.
It is part of his strategy of making Fiat one of world’s largest carmakers, producing six million vehicles by 2014 on the basis that only big companies will survive.
As part of that philosophy, Marchionne has said that does not have any plans to sell Alfa Romeo or Ferrari; nor will he split the luxury sport car division from the main company and issue shares something which had been talked about in the past.