Fiat Seeks Italian Tax Break to Export Cars to U.S.

Fiat SpA has asked the Italian government to reduce federal corporate taxes on exported goods to enable the company to profitably build Chrysler Group vehicles in Italy for export to North America, Bloomberg News reports.

Increased exports may be part of the business plan Fiat is scheduled to unveil on Oct. 30, according to the news service, which cites unidentified sources.

Bloomberg says the company is considering a scheme to make the Dodge Dart compact sedan alongside the Alfa Romeo Giulietta at its Cassino plant near Rome. The two cars ride on the same Fiat-developed platform.

Fiat-Chrysler CEO Sergio Marchionne reassured Italian unions earlier this week that Fiat won't shutter any of its five domestic factories. He has said building vehicles for export could boost productivity at those facilities, which are running at 50% of capacity.

Marchionne also has been telling the company's Italian workers that it needs labor concessions to make its domestic plants competitive enough to produce vehicles for the U.S. market.