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CGIL demands clarity from Fiat after Chrysler deal

'We hope production stays Italian' says Camusso

02 January, 15:42
CGIL demands clarity from Fiat after Chrysler deal (ANSA) - Rome, January 2 - The leader of Italy's largest trade confederation CGIL urged Italian carmaker Fiat to provide clarity on what it intends to do with its Italian production after announcing it has gained full control of American carmaker Chrysler in a $4.35-billion deal.

"After this important step that clarifies the ownership structure, it is indispensable for Fiat to tell us what it intends to do in our country," Susanna Camusso said. The purchase "appears a matter of great relevance not only in light of the possible and hoped-for synergies on the world markets, but also because of the repositioning of the multinational company in relation to its competitors," she added.

Italy's largest vehicle producer on Wednesday announced it had gained full control of Chrysler after more than a year of negotiations with VEBA, a healthcare trust associated with the United Auto Workers union, to acquire the remaining 41.46% share of the company. In exchange, Fiat and Chrysler will pay out $3.65 billion in cash to VEBA, sharing the cost evenly, while Chrysler has agreed to paying it over the next three years an additional $700 million.

The trade union leader requested Fiat explain how it planned to integrate the Italian production facilities into the newly formed entity that would arise from the complete purchase of Chrysler. She added that she hoped that company management, including company strategy and divisions, remained Italian.