The Italian government is expected to start aid negotiations with the unions and Fiat this week. Perhaps even more important to the Italian economy than GM is to ours, Fiat is Italy's largest single private-sector employer. With the global economic crisis hitting them hard, Fiat just reported a 70% drop in their fourth-quarter profits, and is predicting a further 20% drop in demand through 2009. We don't know yet how this aid will affect the new Chrysler/FIAT partnership or Chrysler's U.S. aid package, but we'll keep you posted as the story unfolds.
[Source: The Detroit News]