Italy must improve its efficiency if it wants to stay competitive, Fiat CEO Sergio Marchionne said on Italian television on Sunday night. He told viewers that not a single euro of Fiat’s profit came from Italy.

“Fiat would do more if it took Italy out from its results. We cannot continue to manage operations at a loss forever,” he added. 

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Fiat has pledged to invest EUR20bn (US$27.83bn) in Italy if it gets more labour flexibility at five Italian car factories, which together cannot match the productivity of Fiat’s single Polish plant.

Marchionne, who has said he will close down Sicily’s Termini Imerese plant, has won backing from a majority of workers at Fiat’s Pomigliano D’Arco plant to introduce some landmark changes to the national labour contract. The plant is earmarked to build the new Panda if workers agree to the changes.

But the key union Fiom, which is fighting the plans, criticised Marchionne’s comments. He was speaking “as if Fiat were a foreign multinational that has to decide if wants to invest in Italy,” said Giorgio Airaudo, in charge of the car sector for Fiom.

Outlining his changes in the Fabbrica Italia (Factory Italy) project, Marchionne said that he wants to reduce the time allotted for breaks at Italy’s Melfi car plant, in exchange for financial compensation.

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“The real problem is not the reduction of the time allowed for breaks, the real problem is competitiveness,” Marchionne said.

“Our proposal aims to give Italy, and Fiat, the ability to compete with neighbouring countries,” he added, promising workers’ salaries would rise along with efficiency.