Fiat has poured cold water on suggestions that extending the Italian scrappage scheme would save its plant at Termini Imerese in Sicily.

Conceding the scheme had stimulated demand in Italy last year, Fiat chief executive Sergio Marchionne said renewing such incentives also had the effect of bringing forward purchases which consumers would have made in future years.

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“Rather than a temporary stimulation of demand, what is needed now is a serious and committed industrial policy aimed at strengthening the competitiveness of the auto industry,” he said.

Marchionne added Fiat would “fully support” any decision by the Italian government not to extend the scrappage scheme, while a spokesman told just-auto the initiative would not save the Termini factory.

“The government believes by extending the scrappage scheme in Italy, that that will [give] us an alternative to keep the Sicily plant open,” he said. “That is not the case.”

The comments follow today’s meeting in Rome called by the Italian ministry of economics and attended by Fiat and its unions, who have staged a series of strikes this week in protest at the Termini plant’s proposed closure.

“We must prevent any attempt to separate the story of Termini Imerese [from] the assessment of the entire business plant of Fiat,” said Fiom-Cgil union national coordinator Enzo Masini.

Discussions are ongoing on a possible reduced incentives scheme.

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