Fiat is to make the new Multipla in Serbia rather than Italy. Sergio Marchionne made the switch sound very much like a punishment for the Italian unions which have been obstructing change and picketing Italian plants.

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“Multipla was slated for an Italian plant. But it would be unwise to stop the development of our portfolio of vehicles.

“We need certainty on the execution of the product programme in which we are investing EUR20bn,” Marchionne said in answer to questions during the financial analysts’ conference on the half year results.

Serbia was to specialise entirely in small cars leaving the Italian factories to look after more complex vehicles. The move means that Serbia will have the skills to accommodate any cars in the future if the Italian unions continue to press for higher pay by shutting plants.

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