The Eastern block nations will take the business with flexible work rulesLampredi said:Marchionne may appear to be playing hardball, but the problem with moving production abroad is that Fiat will then be stuck with overcapacity issues in Italy, and as we know it's politically difficult and very expensive to close plants there (hence the current plan to produce and export premium cars built in Italian plants).
So how much of a choice does Fiat really have?
As the news article said, Fiat has already invested in several plants where they are stuck. Plants that have not had an investment are subject to closure and should be closed if Fiom is a disruptor.Lampredi said:Marchionne may appear to be playing hardball, but the problem with moving production abroad is that Fiat will then be stuck with overcapacity issues in Italy, and as we know it's politically difficult and very expensive to close plants there (hence the current plan to produce and export premium cars built in Italian plants).
So how much of a choice does Fiat really have?
That statistic is irrelevant. Look at the Polish Tychy plant: was the most productive plant two years ago, now it's below Pomigliano. The reason is simply that if the market is such that you aren't selling cars, plants won't be producing squat while having the same amount of workers. [removed] systems in Europe provide for a labor support mechanisms that allows a company to avoid having to fire people during economic slumps.68RT said:If you look at the charts of units compared to workers, the Italian plants for the most part are manpower intensive. That is OK if you are producing a luxury product (I.E. Ferrari, Mazerati, Lambo, etc.) but not a mass market brand that can utilize robots or high volume methods. The need to be cost competitive even against the fairly high cost German/French manufacturers is a must. Work rules make a big difference as shown with the new UAW contracts.
But do you think the government will in fact resolve the issue? And if not, is it likely that Marchionne will move production out of Italy as he's threatened to do?RVC said:The issue is that Marchionne is calling on the govt to pass new laws to remove any arbitrary interpretation, hence disarming the courts. However, whatever laws the gov't/parliament will try to pass (short of a change to the constitution), will likely be struck down by the constitutional court that will invariably find something to not like about it. It's time for the gov't (and even more so the Italian president, another "former" communist), to grow a pair and resolve this issue once and for all.
The government can't afford not to.Lampredi said:But do you think the government will in fact resolve the issue? And if not, is it likely that Marchionne will move production out of Italy as he's threatened to do?
I Sincerely hope (for them) that they do something, otherwise there's no doubt in my mind that Marchionne will be forced to set up his Alfa Romeo shop elsewhere (wont get into that, but he could call them "Alfa Romeo in exile" factories ,or something). You can't knowingly put your company's money in a place that doesn't offer the guarantees you need, if you have alternative options.Lampredi said:But do you think the government will in fact resolve the issue? And if not, is it likely that Marchionne will move production out of Italy as he's threatened to do?