Following the departure of Sergio Marchionne as Fiat’s CEO and appointment of Mike Manley in his place, the head of Fiat Chrysler Automobili (FCA) trade union, Zoran Markovic says that the management changes in the company will not lead to changes in the company’s business direction.
“It was confirmed that Fiat Chrysler will remain in Serbia, which means that the new contract will be signed and that there is no reason for concern,” Markovic said, after Michael Manley replaced Sergio Marchionne as the company’s CEO.
In his opinion, Marchionne marked an era in the company’s operations in Kragujevac.
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Markovic estimates that Fiat’s factory in Kragujevac currently has greater concerns than the one who manages the company on a global level, such as productivity, number of working days, working conditions….
The Politika daily reminds that Marchionne revealed a five-year business strategy of Fiat Chrysler one and a half months ago, which envisages that this auto-giant would continue producing Fiat 500-L in Kragujevac. The daily also wonders whether the new CEO, Mike Manley would stick to the strategy in his management of the company.
According to the FCA financial report, the company’s business revenues in 2017 fell by more than 20 billion dinars, to about 170 million euros.
“However, the company achieved a net profit of 2.13 billion, which is somewhere at the level of the previous year’s results. Still, during the previous year, state budget allocations for this company have also been significantly reduced,” the daily said.
The financial report also states that in 2016, the company received additional state incentives in the amount of 1.25 billion dinars, paid in by the Government of Serbia in accordance with the Amended Contract on Joint Investment.
“We don’t know as yet how big are the state incentives for FCA going to be according to the new agreement especially considering that the previous one was signed before the Stabilization and Association Agreement entered into force, which strictly defines the rules for allocating state incentives”, the Politika writes.
In the meantime, Serbia has harmonized its legislation with the European framework, so the question remains whether the state incentives are now even possible, in accordance with the Law on State Aid Control.
This post is also available in: Italiano