Fiat Reassures Government It Will Stay in Italy

Fiat SpA aims to boost exports beyond Europe to avoid slashing its planned €20 billion ($26 billion) investment in its factories in Italy, according to Prime Minister Mario Monti.

The plan could hinge on building Jeep and Chrysler models in Italy for shipment to the U.S. and other markets.

Chairman John Elkann and CEO Sergio Marchionne met with Monti and three cabinet ministers on Saturday in Rome. The government summoned the executives after Fiat froze new investments in Italy.

The company pledged to maintain its manufacturing presence in Italy and develop new models to sell when Europe's car market revives, according to Monti. He says Fiat also is focusing on prospects offered by its integration with Chrysler.

Marchionne has previously proposed building Jeeps and other Chrysler models in Italy. But he has warned that Fiat might shutter two of its five domestic assembly plants unless they can make vehicles at competitive labor costs for export.

Monti says Fiat and the government will form a task force to discuss "conditions to strengthen" the company's competitiveness.