Fiat Chrysler Automobiles NV is reviewing its investment strategy for Italy after the nation approved taxes on the purchase of larger gasoline and diesel vehicles, CEO Mike Manley stated on Monday.
The automaker said in late November it would invest over 5 billion euros ($5.7 billion) on new models and engines in Italy over the next three years to try to make better use of factories and increase jobs and margins.
In December, however, Italy approved ways to offer subsidies of up to 6,000 euros to purchasers of new low-emission vehicles while introducing taxes on the larger gasoline and diesel vehicles.
“It certainly means it needs to be evaluated again. It’s being reviewed at this moment,” Manley informed journalists on the sidelines of the Detroit auto show. “Until that review is finished I can’t comment any further.”
FCA’s strategies in Italy were intended to deliver on a strategy outlined by late CEO Sergio Marchionne in June, when he committed to keep converting Italian plants to churn out higher-margin Alfa Romeos, Jeeps and Maseratis, along with hybrid and electric vehicles, to protect jobs and lift profit.
Manley stated tariffs imposed by U.S. President Donald Trump’s administration on steel and aluminum imports would add between $300 million and $350 million in additional costs for FCA in this year.
He staed the partial U.S. government shutdown for spending for a wall sought by President Donald Trump on the U.S.-Mexican border has postponed final certification of one of FCA’s heavy-duty pickup trucks.