Marchionne Slams Scrappage Schemes

An overconfident statement coming from Fiat's CEO, Sergio Marchionne, surfaced today, after the Italian government said it is considering dumping plans for more eco-incentives. According to Italian premier Silvio Berlusconi the main reason behind what Marchionne had to say about Italian scrappage schemes (you can read his full statement below), may be the fact that Marchionne doesn't want such a scheme to interfere with its plants of idling or closing some of its facilities.

"In relation to the eco-incentives, I want to emphasize that we would fully support any decision by the Italian government not to renew them," Marchionne said.

"In Italy, as in other European countries, such incentives stimulated demand during 2009, but they also had the effect of bringing forward purchases which consumers would, in any event, have made in subsequent years. Renewing those incentives would only serve to defer the underlying problem to a future date."

"As stated last week, when the Group communicated its official outlook for 2010, Fiat is capable of managing the situation from both a financial and industrial point of view, even under the most pessimistic scenario."

"But rather than a temporary stimulation of demand, what is needed now is a serious and committed industrial policy aimed at strengthening the competitiveness of the auto industry, a sector which governments worldwide consider vital to their economies."

Fiat announced in the end of January it will idle all six Italian plants during the last week of February and the first week of March, with approximately 30,000 workers to be affected by the decision.