Fiat calls for serious restructuring of auto industry amid overcapacity

The Associated Press ~ staff The News
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ROME - Fiat, which has recently taken a controlling stake in Chrysler, called Thursday for a "serious restructuring" of the auto industry, saying the global crisis has worsened the problem of production overcapacity.
"The global crisis has further aggravated the problem of production overcapacity that has been plaguing the automotive industry for years," said a statement released by Fiat.
The statement followed a meeting between Fiat chief executive Sergio Marchionne with the Italian government and unions at Premier's Silvio Berlusconi's office in Rome to illustrate the group's mid-term program.
Fiat also said "far-reaching strategic measures are necessary to achieve an adequate level of critical mass, increase volumes produced for each platform and expand geographic presence."
It said the deal with Chrysler was part of that strategic approach.
During the talks, Fiat outlined its production plans in Italian plants. Marchionne called for a concerted effort, saying that "maintaining equilibrium in employment levels in the face of these extremely difficult market conditions is no easy task."
Earlier in June Fiat took on most of Chrysler's assets in exchange for technology and management know-how. The alliance created the 6th largest automaker worldwide, according to Fiat.

Geographic location: ROME

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