Fiat, Peugeot to invest in panel vans
PARIS — Italian car maker Fiat and PSA Peugeot Citroën plan to invest more than €700m on new delivery vans over five years to cut costs as they replace ageing models. Fiat would invest €550m, while Peugeot would invest €150m in developing new versions of the full-sized Fiat Ducato, Peugeot Boxer and Citroën Jumper models, Turin-based Fiat said on Tuesday. The vehicles would be built at the manufacturers’ SevelSud plant in Italy, it said.
Paris-based Peugeot plans to invest more than €750m to produce a new vehicle on its own at the SevelNord plant. Mr Marchionne said further investment in Italy, where Fiat’s factories are under-used because of slumping European car demand, would require reforms that should be agreed on with European unions, businesses and the government.
Fiat "needs clear and reliable rules" before investing in more projects in its home country, he said. The company "won’t put its survival at risk".
Fiat is in a legal dispute with the Fiom union over new labour rules, including longer shifts and shorter breaks. Fiom, which claimed the new rules are anti-union, did not sign the contract.
Fiom is part of Italy’s biggest union Cgil.... Read the full, comprehensive news article and discuss at Business Day