Nearly 60,000 Jobs to Be Lost Without Government Aid, Fiat Says
Italian Prime Minister Silvio Berlusconi recently held a meeting with industry officials to discuss the possibility to help ailing companies, Autonews wrote, but an announcement is yet to be announced.
Fiat's CEO Sergio Marchionne insisted the Italian authorities should support the entire automotive industry in the country and not a specific company because every single manufacturer that gets closer to collapse causes a negative impact over the whole sector.
"We expect help from the government for the entire car sector. It's not about helping Fiat but restarting an entire sector and the whole economy,” Marchionne was quoted as saying by Autonews.
According to the aforementioned source, new car sales in Italy fell 13.4 percent to around 2.16 million in 2008 and analysts predict even a gloomier future with a drop of around 14 percent. A total of 1,850,000 units are expected to be delivered this year, Autonews wrote.
France already agreed to help domestic automakers to remain in business but it asked auto execs to cut their bonuses in return for financial aid. France would provide up to 6 billion euros ($7.79 billion) to local manufacturers in order to preserve jobs and cost-cutting measures that might affect the national economy.