Automotive News [sub] reports that Fiat CEO Sergio Marchionne is angling for a special Italian-edition auto bailout, echoing a FIM-CISL union official who earlier argued that 60k Italian auto jobs are “at risk.” The playbook should sound familiar. “We expect help from the government for the entire car sector,” Marchionne said. “It’s not about helping Fiat but restarting an entire sector and the whole economy.” This coming from a firm which will likely take a 35 percent stake in Chrysler… if the US government comes through with enough bailout funds to make it worthwhile. Not that double-dipping is in any way unheard of, as bailout mania hits the global automakers. Italian PM Silvio Berlusconi has already met with EU Industry Commish Gunter Verheugen in Turin, Fiat’s hometown. Verheugen had earlier warned that not all European automakers may survive the current auto sector crisis.
There are no projections currently available on the cost of an Italian bailout to taxpayers there, but with the 60k jobs number floating around in a nation which had been enjoying a historically low unemployment rate of 7 percent, there’s no knowing how high it could go. Did we mention that FIM-CISL is part of a politically well-connected union conglomeration which employs some 35 percent of Italy’s workforce? Yeah, this one’s just a matter of time. On the plus side, perhaps an Italian bailout might give Fiat some cash to put into their Chrysler venture. God knows we’re getting sick of the thank-you letters.
The funny thing is, only a week or so ago some were saying that the various EU countries wouldn’t be allowed to bail out their local auto makers due to iron clad EU rules. Hah!
Did we mention that FIM-CISL is part of a politically well-connected union conglomeration which employs some 35 percent of Italy’s workforce?
Yeah, but Forza Italia is entirely comprised of the cream of Italian conservatism**, so it’s not a given.
Of course, that workforce is more or less centred in Piedmont and Lombardy, which effectively represent a) Italian manufacturing, b) what remains of Italy’s economic ability and c) probably the sanest parts of the country, relatively speaking/
** (note: what constitutes “moderate conservatism” in Italy runs that gamut from what would be considered radically leftist in the US, to Mussolini’s grand-daughter, who holds very similar views to her Nono)
psar:Indeed. Image improved.
What about the European Community ban on “support” of industries with taxpayer monies?
And the idea the Europeans were yammering about which was their wanting to go get all p!ssy and run to the World Trade Organization and whine that those nazty Amerikuns were bailing out the auto industry with taxpayer monies?
Shoe.
Other foot.
In mouth.
Image improved.
Awesome photo. Just awesome. Bella!
EU = another level of bureaucracy => another opportunity for subsidization