Marchionne Asks EU to Gradually Reduce Incentives

Fiat Chief Executive Sergio Marchionne thinks the European countries offering scrappage incentives should gradually reduce them in the next two years and allow the industry to deal with overcapacity. Fiat is one of the companies that benefited the most from the scrapping schemes as its fuel efficient models were eligible for the money offered by governments. Furthermore, the Italian thinks Fiat could get even more from these programmes in case they continue in 2010, with a predicted market share of more than 9 percent.

"If it were me, I would be planning for a gradual reduction of incentives over 2010 and 2011," he said at the launch of the new Punto Evo according to Reuters.

Marchionne this week will meet with Italian officials on the local incentives and will then travel to the United States to discuss Chrysler's future and the way Fiat will bring its models in the country. Fiat's CEO said the company's product plans for the United States will be submitted to local regulators in October, with a final decision, followed by a public statement, to come in November.

Marchionne also hinted that Chrysler is looking to develop an "universal" car that would be addressed to more segments at the same time. Fiat Punto Evo already does that, he said, as it offers a sporty version for young buyers as well as a more spacious configuration especially aimed at families.

"There's no doubt people have had success with what I call a universal car ... the architecture must allow you to do it," he said. "I think we are doing that for Chrysler."