The Italian market watchdog Consob is getting concerned about Fiat’s production plans in its home market.
It has asked the carmaker to clarify its business plan for its Italian factories, sources told the La Repubblica daily.
The newspaper reported that Conson has written to Fiat after taking taken issue with a series of “contradictory announcements” by CEO Sergio Marchionne over production plans in Italy.
Unions have also been urging the carmaker to make good on investment pledges in its domestic hub.
Consob is concerned that Fiat’s strategic focus has shifted to the US since it took over management of Chrysler in 2009. The watchdog wants the company to explain its plans for Italy when it releases third-quarter results at the end of this month to dispel uncertainty, La Repubblica said.
Fiat has a 53.5% stake in Chrysler, set to rise to 58.5% by the end of the year. Fearing the growing integration with Chrysler will lead to further reductions in Fiat’s Italian operations, workers have already staged a one-day strike organised by Fiom, the Italy’s biggest metalworkers union.
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By GlobalDataFiat has six loss-making car factories in Italy, one of which is due to shut down at the end of the year. Marchionne last year announced a plan to invest EUR20bn (US$27.8bn) in the country conditional on local unions fully backing more flexible labour contracts to boost productivity and cut down on absenteeism.
A majority of workers have supported the deals, but Fiom has rejected them.
La Repubblica said Consob’s request for clarification targeted in particular production plans at Fiat’s Mirafiori plant in Turin. Marchionne had initially planned to produce 280,000 cars a year there, including two SUVs with the Jeep and Alfa Romeo brands, for an investment of EUR1bn (US$1.4bn).
Earlier this month Fiat confirmed production in Turin of the Jeep SUV, but delayed it by a year it to 2013, and made no mention of the Alfa Romeo model. Marchionne said the combined group would focus on strengthening its US and Brazil operations to offset a weak European market and the lowest Italian sales in 20 years.