FCA sticks to investment plan for Italy, no redundancies: unions

FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo

TURIN, Italy (Reuters) – Fiat Chrysler (FCHA.MI) will stick to its 5 billion euro ($5.5 billion) 2020 investment plan for Italy, union officials said on Friday, adding that the group had confirmed a pledge to get all employees off furlough arrangements and back to work by 2022.

Executives of the Italian-American carmaker and representatives for the unions met in Turin on Friday after Fiat Chrysler and France’s PSA reached a deal to merge to form the world’s fourth-largest carmaker.

Rocco Palombella, head of Italian union UILM, said Fiat Chrysler management had pledged there would be no job cuts, adding the 400,000 employees of the combined group.

“They assured us that all 400,000 employees of the new group would be guaranteed. There will not be redundancies,” he said.

Reporting by Giulio Piovaccari; writing by Francesca Landini

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