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Fiat head: Plant closings are unavoidable

Nov 20, 2009, 19:47 GMT

Turin, Italy - Fiat head Sergio Marchionne Friday indicated that some domestic car plants would have to be closed because of plummeting auto sales. Marchionne said it was neither 'possible' to keep all six production plants running in the country, nor would such a strategy reflect any kind of 'industrial logic.' He gave little hope for the plant in Sicily, which Fiat wants to close, despite an offer by the regional government to put forth a 400-million-euro (550-million-dollar) rescue plan for the plant in Termini Imerese. 'We have six plants in Italy and produce altogether the same output that can be done in one plant in Brazil,' the Fiat chief said. Marchionne plans in December to discuss his restructuring plans for 2010 with Italy's Prime Minister Silvio Berlusconi. He indicated that Fiat would not need 'any further alliances,' since the new partnership with the US car maker Chrysler was sufficient. He said car sales in November were at an expected level and confirmed projections for the current year.

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Fiat head: Plant closings are unavoidable

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