Thursday, June 21, 2012
Fiat Group Signs Deal with Italian Union on Labor Pact
With Fiat shares losing 30% of their value in the first nine months of the year, the company's sales hitting a 20-year low point in Italy, its European market share shrinking from 8.2% to 7.3% and all of its domestic plants recording losses, CEO Sergio Marchionne has been pushing for an increase in productivity.
The workers’ unions, though, have been resisting changes, threatening with strikes and legal action against the Italian automotive group. This, along with the Italian crisis and the fact that Chrysler is the one keeping the group afloat, has led analysts to predict that Fiat may go as far as to partially abandon its home market.