OCTOBER 14, 2002
Fiat's troubles deepen
Fiat last week asked the Italian government to allow it to ignore employment law and close several factories. Prime Minister Silvio Berlusconi has now said that this will not be allowed to happen.
Beyond that it is not clear what the government can do to help but internal pressure within Italy, including the announcement by Sicilian deputies that they will not vote for the government's budget for 2003 unless the Fiat plant in Sicily is kept open has forced Berlusconi to act.
The pressure could force Fiat to continue its sales of other businesses including more shares in the Ferrari group. It is increasingly likely that Fiat will eventually have to sell Fiat Auto to General Motors.