Italy backs De Tomaso to take over Fiat plant
Sicily factory was due to close in 2011
Fiat says it loses money on every car it makes at its plant in Sicily.
November 22, 2010 06:01 CET
MILAN (Reuters) -- Italy is backing a plan by luxury carmaker De Tomaso Automobili S.p.A. to take over the Termini Imerese plant that Fiat S.p.A. will close next year, Italy's Minister for Economic Development Paolo Romani said.
Romani told reporters the plan would not change the function of the Sicilian site and would allow current staff to be retained.
"The government had immediately started looking into the Termini Imerese issue and has proposed a reasonable solution that would probably keep the factory in the same area without any layoffs," Romani said.
De Tomaso said in a statement that it was working with the "utmost commitment" to the project to relaunch the plant.
The Italian government said earlier this year it had received several proposal for Termini Imerese, which has about 1,400 workers and which Fiat plans to close in an effort to rationalize production in Italy.
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