According to a union leader, Fiat had pledged EUR1 billion of investment in a Mirafiori plant. The company planned to boost the sale of its luxury model vehicles. It also aimed to bring back profit to the loss making European business. The investment had been a turning point for some 5500 laid-off workers in Turin. The move served as a signal regarding the carmaker's commitment to continue its car manufacturing in Italy.
Flavia Aiello, Unione Italiana Lavoratori Metalmeccanici (UILM) union representative at Mirafiori said, "We're very happy with this decision. We had some very strong worries about the future of the plant."
Unions had been worrying about delays that Fiat might make in its Mirafiori investment. This was after Europe had struggle through six years of a contracting market. On the other hand, Fiat promised to cut losses in Europe by 2016.
Fiat Chief Executive Sergio Marchionne wrote in letter to Mirafiori employees stating, "We can't wait any longer, and neither can you."
Join the Conversation