What would you say if Alfa Romeos were made in the U.S.? Well, this may not be such improbable as it sounds, as Fiat and Chrysler CEO Sergio Marchionne has threatened to move Alfa Romeo production out of Italy.
The Fiat-Chrysler Alliance executive said new Alfa Romeo models may be produced outside of Italy because of the country’s labor rules that hinder Alfa’s ability to compete with rivals such as BMW. Fiat has put new investment on hold in its home country in an attempt to convince the Italian government to adopt reforms that will introduce clearer work rules.
Fiat’s decision to halt investment came after the carmaker’s labor contracts suffered a setback in Italian courts. Fiat plans to invest more than €2 billion ($2.56 billion) in Alfa Romeo and Maserati to develop eight Alfa Romeo models and six Maseratis. All these models, including the Alfa Romeo Giulia sedan and the Maserati Levante SUV, were supposed to be built in Italy to solve Fiat’s overcapacity issues in the country.
“The re-launch of Alfa Romeo will continue for sure. Italy should decide if they want it to happen here or not as Fiat and Chrysler have several alternatives,” Marchionne threatened. While Marchionne may be bluffing, Italy cannot afford that risk, as losing production of Alfa Romeo and Maserati would be a major blow for both the economy and the country’s image.
Fiat will soon start production of the Maserati Ghibli sports sedan and will begin deliveries of the new Alfa Romeo 4C sports car. Fiat is in a legal dispute with the FIOM labor union over labor rules, including longer shifts and shorter breaks. Marchionne said Fiat needs “clear and reliable rules” before investing in more projects in Italy.
By Dan Mihalascu
Story References: Bloomberg News
PHOTO GALLERY
