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						Fiat said Wednesday that 
						its plans to boost production in Italy have not been 
						ditched after causing a stir last week by saying it 
						would make a new model in Serbia, reports ANSA. 
						 
						However, the company also told trade union leaders and 
						government representatives that Fabbrica Italia, the 
						plan agreed last year to increase activity in its 
						homeland, could only go ahead if workers accepted change 
						is needed to survive in today's competitive markets. 
						 
						''We are the only company to invest 20 billion (euros) 
						in the country,'' Fiat CEO Sergio Marchionne was quoted 
						as saying by sources at the meeting. ''But we must have 
						guarantees that the plants can function. 'If the project 
						is just a pretext to leave things as they are, it's 
						right that everyone assumes responsibility for their 
						actions in the knowledge that Fabbrica Italia cannot go 
						ahead and the plans and investments will have to be 
						downsized. At this point we want a yes or a no. Yes 
						means modernising the Italian industrial system. ''No 
						means leaving things as they are, accepting that the 
						industrial system will continue to be inefficient and 
						inadequate for making profits and, therefore, for 
						keeping or increasing jobs''. 
						 
						Last week Fiat CEO Sergio Marchionne said the Fabbrica 
						Italia will be slowed following tensions with the FIOM 
						union over proposals to introduce flexible working 
						procedures to increase production at a plant near Naples 
						in exchange for making Panda cars there. 
						 
						FIOM, which is linked to the nation's biggest union CGIL, 
						opposed the accord for the Pomigliano d'Arco plant, but 
						it is going ahead anyway after other unions backed it, 
						as did 62% of workers there in a vote. Indeed, Fiat said 
						Tuesday that it has set up a new company to give it a 
						freer hand in managing the Pomigliano plant. Marchionne 
						reassured the unions that the decision to make the L0, 
						the new vehicle that will replace its Multipla and 
						Lancia Musa models, in Serbia rather than at the 
						Mirafiori plant in the carmaker's Turin home did not 
						spell disaster for the latter. 
						 
						''The move does not remove prospects for Mirafiori,'' he 
						said. ''There are alternatives to guarantee its volume 
						of production''. Marchionne met Labour Minister Maurizio 
						Sacconi and Piedmont Governor Roberto Cota, government 
						sources said, before the round table with union 
						representatives. 
					
						  
					
						Report courtesy of 
						ANSA 
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