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FCA reviewing Italy plan after new taxes for polluting cars

Auto News - Published on Thu, 17 Jan 2019

Image Source: The Financial Express
Reuters reported that Fiat Chrysler Automobiles NV is reviewing its investment plan for Italy after the country approved taxes on the purchase of larger gasoline and diesel cars. The carmaker said in late November it would spend more than 5 billion euros (USD 5.7 billion) on new models and engines in Italy over the next three years to try to make better use of factories and boost jobs and margins. In December, however, Italy approved measures to offer subsidies of up to 6,000 euros to buyers of new low-emission vehicles while introducing taxes on the larger gasoline and diesel cars.

Chief Executive Officer Mike Manley said that "It certainly means it needs to be reviewed again. It's being reviewed at this moment," Manley told journalists on the sidelines of the Detroit auto show. "Until that review is finished I can't comment any further."

FCA's Italian plans were intended to deliver on a strategy outlined by late boss Sergio Marchionne in June, when he committed to keep converting Italian plants to churn out higher-margin Alfa Romeos, Jeeps and Maseratis, as well as hybrid and electric vehicles, to protect jobs and lift profit.

Mr Manley said tariffs imposed by US President Donald Trump's administration on steel and aluminum imports would add between USD 300 million and USD 350 million in extra costs for FCA in 2019.

He said the partial US government shutdown over spending for a wall sought by Republican Trump on the US Mexican border has delayed final certification of one of FCA's heavy-duty pickup trucks.

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Posted By : Joykumar Irom on Thu, 17 Jan 2019
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