Fiat chief executive Sergio Marchionne on
Wednesday denied ever suggesting that the European Union should
provide money to help struggling carmakers close down unproductive
plants.
Speaking as the chairman of ACEA, the European Automobile
Manufacturers Association, Marchionne was reacting to press reports
indicating that he had such a plan and that it was shot down by the
German car industry, which has fewer overproduction problems.
"I have never, ever suggested that the payment for that
restructuring (should rest) on anybody's shoulders other than the
(car) companies," Marchionne said in Brussels.
But the Fiat boss acknowledged that "a (European) plan to
redistribute overcapacity" would be "the easiest way to sell" plant
closures.
Marchionne spoke at the launch of the CARS 21 report, the work of
a panel comprising industry, governments, trade unions, consumers
associations and environmental lobbies, which were called up in 2010
to advise EU policy.
What the report said on restructuring - which often involves
shutting down plants and relocating them to where cheaper workforce
is available - is that they "should not be resisted," but their
impact should be "minimized" through "dedicated" social policies.
While industry experts say that Fiat, along with France's
Peugeot-Citroen and Renault, have the biggest overproduction
challenges, Marchionne made a point of stating that "a couple of
plants are on the edge" also in Germany.
He also questioned the country's alleged superiority on
engineering.
"Sometimes I am confused, I have yet to understand where is value
of this engineering," he said, adding that Fiat-owned Ferraris win
Formula 1 championships.
The CARS 21 report also said that EU emission standards, while
"feasible," should be applied flexibly. But as a result, the bloc
should "not effectively weaken the targets."
Under EU legislation, average car emissions should fall to 130
grams of carbon dioxide (CO2) per kilometer (g/km) by 2015,
decreasing further to 95g/km by 2020. For vans, emissions should fall
to 175g/km in 2017 and 147g/km in 2020.
Transport & Environment, a green group involved in the process,
warned against any watering down of the standards.
"It's depressing to see that the German car industry is back to
its old tricks, calling yet again for so-called 'flexibilities' to
preserve a market for gas guzzlers," one of its researchers, Greg
Archer, said.
But Marchionne dismissed suggestions - included in the report --
that meeting the targets would be cheaper than expected for the car
industry.
"There isn't a single number ... that is deviating from the
original cost" estimates, he said. "It may have been true for other
car companies, it certainly wasn't true for us," he added, singling
out in particular Euro 6 rules for diesel.
The CARS 21 panel also suggested continued EU loans for automotive
research; a more assertive EU trade policy targeting non-tariff
barriers affecting car exports; and a push for a single international
regulatory standard for cars.
Marchionne complained about the "almost miraculous" inflow of cars
from South Korea following last year's free-trade agreement with the
EU, and urged Brussels to insist on appropriate safeguards during
forthcoming talks on a similar deal with Japan.



