Fiat says there are too many car manufacturers!

Unfortunately he explains what is happening is the opposite.

Fiat announces the closing of two years of one of three Italians, to Imola, the CNH, the company that produces machinery for agriculture and construction.

The hope says John Elkann, Fiat's vice president - is that at the end of this crisis there may be fewer car manufacturers. Unfortunately, what is happening today is the opposite. Fiat says, has had to deal with a collapse in the market by 25 percent.

This fall - said Elkann - despite the support of many European governments, is even stronger for an industry suffering from overcapacity. We have the capacity to produce 50% more cars than those that are bought. So, we hope that with this crisis, there are solutions for consolidation.

The five Italian car factories have a production capacity of about 940,000 cars, while in 2008 the cars produced were 630,000, 140,000 Mirafiori against a potential of 300,000.

The strategy to overcome the crisis, according to the deputy chairman of Lingotto, is one of the most aggregate producers, to spread the investment across multiple products and designs.

E l'idea dear to Marchionne to put together some producers to give life to a group of 6-7 million cars a year with Chrysler has stopped at four million, while the completion of the project through an alliance with Opel at least for now remains nebulous, even if not finally closed.

Much will depend on the balance of political power in Germany after the election in September, but the goal of Fiat does not change.

Unions do not like this project and accuse Sergio Marchionne of non-compliance of the commitments made at the Palazzo Chigi, where he had ruled out the closure of factories in Italy.

And the protest at Termini Imerese, while Fiat announced a new stop for layoffs at the factory from July 22 Sicilian to August 5.


Author: AL
Source: Autolatest