In an interview this week with Germany's prestigious "Auto, Motor und Sport" magazine Fiat CEO Sergio Marchionne told of his expectations that the company will make real gains this year while also ruling out any plant closures.

Asked as to why Fiat Auto is not cutting staff in keeping with what its German counterparts are doing, Marchionne highlighted how "Fiat turned in an 820 million euros loss during 2004, compared to savings derived through plant closure which would stand at just 35 million euros. The figures speak clearly: there is little to be gained by closing plants. Moreover Italy's subsidised layoff schemes allows us to employ staff in a flexible manner, long-term, depending on the current state of demand. My aim is to achieve an 8.5 pct stake in the European car market by 2008, having achieved which we can go back to full-time employment for all our workers. If need be, we can even increase our staffing levels."

Marchionne emphasised how any future strategic miscalculations would prove in all likelihood, fatal. A fact which the Fiat CEO will involve into a greater sense of responsibility from the top management: "We can't afford any more mistakes; ever since we broke up with General Motors we have regained precious freedom. Our industry requires discipline when it comes to enacting strategies as well as when we are called to account."
 

As for the performance of the Auto Division's balance sheet, Marchionne spoke of likely 2005 losses somewhere in the order of 320 million euros, compared to what will be "gains within 2006, don't ask me how much, I can assure you there will be gains though." During to future platforms and models the Fiat CEO spoke of their aim being to concentrate 75 percent of its car assembly "on four plants over the next four years. We are concentrating on quality at present and I intend to compare results with those of the German and French manufacturers. Whatever the case, we're heading for the future".

Finally Marchionne turned to the issue of the Lancia brand's future. "It's a case on its own and in the future we're not going to aim for models such as the Thesis. That necessarily requires a strong brand image. A cut in the top tier is not something we're going to achieve easily, that's Germany's playing field. We'll press ahead with the Alfa 166, and then we'll have a hard think about the next model. There's no room for fancy stuff". As for the prospect of future co-operation between Fiat and Volkswagen, Marchionne is clear: "anytime".