Italian Government Wants Assurances from Fiat Not to Close Factories

The Italian government is investigating Fiat'sFiatItaly, 1899 > present159 models
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plans to possibly close a plant in Italy. They are investigating the company's intentions to ensure that the closure is necessary, if Fiat goes through with it. At the moment, Fiat is denying that it plans to close any of its Italian factories, but the government wants to be assured. 

Fiat, which owns a majority of ChryslerChryslerUnited States of America, 1925 > present70 models
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, has been investing less in Europe and trying to expand into the US both with its own brands and with Chrysler. It wants to limit European investment during the monetary crisis in Western Europe that is lowering car sales. The company plans to spend €7.5 billion this year, but most of that money will go outside of Italy.

The Italian government wants assurances so badly because there had been rumors that Fiat would close a plant. It has already temporarily laid off workers due to low demand. 

The weakening European market has Fiat waiting to develop a new generation of the PuntoFiat Grande Punto - Punto Evo Gen.3Italy, 2012 > present31 versions
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. Instead, it is spending money on models that it will be able to sell worldwide like new Alfa RomeoAlfa RomeoItaly, 1910 > present108 models
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models. 

Car sales in Italy dropped 21.4% in July according to the Italian government. 

Source: Automotive News Europe