Fiat CEO Says Unions Have Rendered Italian Factories Profitless

Carmaker Fiat (FIA.MI) would perform better without its loss-making Italian plants, Chief Executive Officer Sergio Marchionne said on Sunday, stressing that Italy must boost efficiency to stay competitive.

Marchionne, at the helm of Italy's biggest industrial group since 2004, has clashed with domestic unions after engaging in an unprecedented battle to improve productivity at Fiat that may have repercussions for Italy's whole rigid industrial system.

The resolute CEO has pledged to invest 20 billion euros ($27.83 billion) in Italy if it gets more labor flexibility at five Italian car factories, which all together cannot match the productivity of Fiat's single Polish plant.

"Not a single euro of (Fiat's) planned 2-billion-euro profit margin comes from Italy," the outspoken Marchionne said in a rare TV appearance on Italian show "Che tempo che fa."





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Yonder7 - 10/27/2010 11:02:13 AM

+10 Boost

Tha same thing is happening in US...

theman440 - 10/27/2010 11:03:19 AM

+8 Boost

I like this guy - he has BALLS.

uaw_lax - 10/27/2010 12:05:46 PM

-7 Boost

over 70% of all auto plants are unionized so you cant blame the workers for being noncompetitive Ford's 1.7 BIL quarter is an example BMW being voted as the most sustainable automaker in the world two years strait is Unionized Toyota in Japan heavily unionized. you can dislike the unions all you want but this is the nature of the auto industry.

gkearns56 - 10/27/2010 10:37:02 PM

+4 Boost

Hey BlowHard UAW(EX)_LAX. Here you go again spouting off inaccurate and made up information. Give some factual websites and links about Toyota plants in Japan being unionized. What a liar you are.

A year ago the USA Today newspaper ran a story about where every car is built; what percentage of parts are foreign vs American that go into the cars; where the pants are located; number of employees AND whether the plant had a union there.

Obviously you didn't see the USA Today article. Otherwise you would have had your facts straight regarding the Toyota plant in Japan.

Can we please campaign to ban inaccurate liars like UAW_(EX)LAX. If the blog is about UAW members or unions, he will chime in to support his pot smoking, alcoholic drinking lunch workers. His comments are worthless because he's simply makes stuff up and he not credible anymore. Agent009 Please revoke his status.

uaw_lax - 10/28/2010 2:43:19 AM

-4 Boost

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ad4Gl2Sg1zGU&refer=japan

http://www.japantoday.com/category/business/view/japanese-auto-unions-seek-pay-hikes-in-annual-wage-talks


http://www.laborradio.org/node/3878


http://www.upi.com/Business_News/2004/06/16/Japanese-union-tries-to-help-UAW/UPI-94031087419694/


http://www.labornet.org/news/0306/horizu.htm

uaw_lax - 10/28/2010 2:45:12 AM

-4 Boost

You think i need to make this stuff up? You just don't hear much about it because many people don't want you to.

uaw_lax - 10/28/2010 2:51:21 AM

-4 Boost

"A year ago the USA Today newspaper ran a story about where every car is built; what percentage of parts are foreign vs American that go into the cars"

OK so where is YOUR limk. BTW this is called Globalization. There are no manufactures that build an entire car from components from a single country.

uaw_lax - 10/28/2010 10:26:02 AM

-3 Boost

lol I give you the proof you want and all you can do is deboost it! FYI I dont care if i get boosted or deeboosted!

uaw_lax - 10/28/2010 10:33:24 AM

-3 Boost

I guess the truth hurts, but just be a man learn from it and use it for your advantage when you need it.

Agent009 - 10/27/2010 12:44:01 PM

+2 Boost

Naw.. uaw_lax abides by all of the rules.

internationalmanofmystery - 10/27/2010 2:51:34 PM

+6 Boost

...some SERIOUS union hating here!

gkearns56 - 10/28/2010 8:30:58 AM

+5 Boost

UAW-(Ex)LAW: There you go again reading blindly again. Nobody has disputed or said anything contrary about autombiles having varying degree of parts from different countries in a car. (However most Japanese car companies, in Japan, use suppliers from their country). No wonder your American made car is a POS.

Why don't you take that mentality back to your lunch time pot smoking and drinking kronies. Agent 009: I think you must need a snicker at UAW-LAX or you drive an American made car that his UAW kronies built. I'm beginning to think UAW_(Ex)LAX must be the person who will be negotiating the unions next collective barginning agreement. (Don't forget to include the perk all lunches paid while pot smoking and drinking for your factory buddies).

internationalmanofmystery - 10/28/2010 9:35:19 AM

-3 Boost

sportsbike80
gkearns56

And you both do what for a living? Just curious

uaw_lax - 10/28/2010 10:31:38 AM

-2 Boost

If there comments where any indication of their aptitude I would say:

gkearns56 Would be unemployed.

sportsbike80 works at Dairy Queen.

uaw_lax - 10/28/2010 11:35:13 AM

-2 Boost

Yea dairy queen for sure!

uaw_lax - 10/28/2010 11:52:48 AM

-1 Boost

"For instance, when UAW-LAX's tool for screwing on lug nuts breaks, UAW_LAX has to sit and wait for his UAW superior to fill out paper work,"

FYI there are redundant/backup tools in case of the main ever failing. All it takes is one phone call and a repair technician is on his way ASAP.

Shredmo - 10/28/2010 1:01:20 PM

0 Boost

Never been a supporter of the uaw, but this argument against them is a stretch. When tool goes down, assembly line stops. It is a race to fix it ASAP. While I could have repaired/replaced most tools, an expert is necessary to reduce time the line is off. You wouldn't believe how fast tools are replaced even if you saw it with your own eyes. Plus, there is not enough room for all your spare tools in your area.

Joe_Limon - 10/28/2010 1:04:13 PM

-2 Boost

Uaw lax has you on this point. It's more efficient to keep a person working and hire someone else to do the replacing/"repairing their own wrench"

At this point you are severely trolling sportsbike80. If you wish to show your resentment towards union labour, it looks far better to provide facts then insults.

thstone - 10/28/2010 7:35:17 PM

+1 Boost

Let's keep things in perspective;

First, the US domestic auto manufacturers should place equal blame on their own product planning, engineering, and executive managemnt teams as the Unions. There is more than enough blame to go around for EVERYONE at Ford, GM, and Chrysler.

Second, while the UAW does appear to get its "take" straight off the top, the Unions can't be solely blamed for GM's and Chrysler's bankruptcies. Again, there is more than enough blame to go around for EVERYONE.

But third, the UAW needs to keep its arrogance and greediness in check. Just because a company starts to post profits, that doesn't mean that its time to make demands for more compensation. The UAW needs to realize that its members are already doing quite well compared to the rest of the manufacturing sectors and leave it at that.

Joe_Limon - 10/28/2010 8:04:16 PM

+1 Boost

I disagree. If the product planning and engineering was actually that horrendous, they wouldn't have sold nearly as many vehicles as they did.