In what it described as a major gamble, Fiat will go ahead with an investment of 1 billion euros – about $1.5 billion — in its flagship Mirafiori plant in Turin, Italy to assemble a Maserati sport-utility vehicle in a factory where work rules have been a major point of contention between the company and a key union.
The Italian partner of Detroit-based Chrysler has been threatening to shift production, indeed, even its headquarters, out of Italy if it didn’t get the sort of concessions needed to make it more competitive. CEO Sergio Marchionne is still dropping broad hints that Fiat’s corporate offices may be moved to the U.S.
But the maker is going ahead with plans to produce the new Maserati Levante – originally known as the Kubang – in Turin, “despite the current economic and political uncertainties,” Marchionne revealed in a letter sent to the Mirafiori plant’s employees.
“Every organization and its people face important moments. Moments when it is necessary to take courageous decisions, even though the normal prudence and logic might suggest waiting. Today is one of those moments,” Marchionne wrote.