Fiat of Italy do not leave. Will invest 20 billion euros

Fiat plans to invest 20 billion euros to modernize production plants in Italy and increase local market to 1.4 million vehicles by 2014, Sergio Marchionne said after meeting with Prime Minister Berlusconi.

"Fiat is a multinational company that is expanding internationally, but keep an Italian heart," said Minister of Industry, Paolo Romani, after discussing the group's investment plan with President John Elkann, transmit Bloomberg, quoted by Mediafax.

Marchionnne caused a stir in Italy after he said earlier this month that Fiat and Chrysler Group could become a single entity, possibly based in the United States. He later recanted, saying that was not taken any decision and not put such a problem before 2014.

Fiat plans to improve productivity and capacity utilization in Italy, its main market, given that its 2010 profits were not obtained locally.

"Marchionne and Chairman John Elkann Fiat and Fiat confirmed its intention to invest 20 Industrial billion in Italy," Italian government said in a statement.

Fiat, based in Turin, currently holds a 25% stake in U.S. carmaker Chrysler.

Source: http://www.fiat.com/