Fiat chief Sergio Marchionne said this week during a meeting with Italy's industry minister that he won't cut jobs in Italy after the company is merged with Chrysler.
Newly-appointed minister Flavio Zanonato recently asked Fiat "to stay in Italy" after its planned merger with Chrysler, a U.S. company, was announced.
Italian unions fear that the move of the group's headquarters to the United States will mean jobs will be cut in Italy according to Reuters.
Zanonato met with Marchionne and Fiat's controlling shareholder John Elkann this week, and both assured the minister that Fiat "intends to maintain employment" even as Italy continues to struggle to sell cars.
"The meeting went really well," Marchionne said to reporters in Rome according to Reuters. "We have confirmed our commitments for Italy."
Italian car sales fell nearly 20 percent last year and are seen falling 5 percent more this year to about 1.3 million vehicles according to Reuters. The Italian government, already dealing with a recession and mandated budget cuts, has no clear cut answer to help sales flourish once again.
Despite the low sales, Fiat is planning on building Jeeps and a new line of Alfa Romeos in Italy, for export markets in places like Latin American, Asia, and the U.S.
Fiat has repeatedly reassured unions and politicians alike that it does not have plans to close down factories, unlike competitors Ford Motor, Peugeot SA, and General Motors.
Fiat loses money in Europe and its profits come from locations like the U.S. and Brazil where its Ferrari and Maserati are popular each sales quarter according to Reuters.
"The meeting took stock of the automotive market's situation and offered the chance to take the first step in working together to relaunch Italy's car market," the Ministry said according to Reuters.
Fiat and Fiat Industrial employ approximately 80,000 people in Italy.
Related Articles:
Tesla Motors Working on Small Crossover, Compact Sedan, Will Reach Dealers by 2017, Prices Revealed (VIDEO)
Transformers 4 News: Optimus Prime Gets an Upgrade, Bumblebee Becomes a 1967 Camaro, New Autobots Designs Revealed by Michael Bay (PHOTOS/ VIDEO)
College Golfer Fined By NCAA For Washing Her Car on Campus (PHOTOS)
Elon Musk: Tesla Expanding LA to New York High-Speed Charging Stations, Smaller EV Coming Soon (VIDEO)
Honda Fit EV Lease Price Lowered to Just $259 a Month With No Down Payment (VIDEO)
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
