Marchionne: Fiat Won’t Abandon Italy

CEO Sergio Marchionne insists Fiat SpA has no plans to close any of its six plants in Italy despite company losses in Europe he estimates will reach €700 million this year.

Marchionne also tells Rome-based daily La Repubblica he has "never spoken of layoffs, never proposed to close plants, never said I wanted to leave" Italy.

But the CEO warned earlier this year that Fiat might be forced to shutter one of its five Italian assembly facilities if operations did not become competitive. He also said previously that Fiat and affiliate Chrysler Group LLC might set up headquarters in the U.S. after they merge.

Marchionne defends his decision to delay the introduction of new models to conserve cash. He contends it is pointless to debut fresh vehicles during a deep sales slump.

Marchionne is scheduled to meet on Saturday with Italian Prime Minister Mario Monti to discuss Fiat's plans in Italy. Earlier this week two Italian ministers urged the company to meet with the government to clarify the country's role in Fiat's future.

The company has promised to outline its plans when it reports third-quarter financial results on Oct. 30.

Separately, Chairman John Elkann tells reporters that Marchionne has his support and that of his family, the descendants of Fiat founder Giovanni Agnelli, who own a controlling interest in the company.