* Fiat CEO: Would fully agree with non-renewal of incentives
* Fiat CEO: There is need for serious industrial policy
* Fiat does not seem interested in incentives - Berlusconi
(Recasts, adds comments by Fiat CEO)
ROME/MILAN, Feb 4 (Reuters) - Fiat said it would accept any
government decision not to renew Italian incentives to buy new
cars, which has become a bargaining chip in a political row over
plans to close a Sicilian car factory.
"Now there is a need not to ease the market's pain but for
strong and serious industrial policy with the goal of
strengthening competition in the auto industry," the Italian
carmaker's chief executive said in a statement on Thursday.
Previously, Marchionne had called for a gradual decrease of
incentives to prevent a drop in demand when tax breaks for new
car buyers end. Fiat has said it could post flat trading profit
this year without incentives.
But the government has indicated a renewal of incentives
could hinge on Fiat's plans to move jobs to Italy from abroad in
exchange for the planned closure of its loss-making Sicilian
factory at Termini Imerese.
Senate Speaker Renato Schifani said on Thursday the
government did not have to renew incentives without a guarantee
jobs will be safeguarded, especially at Termini.
"We have to have the courage to say that there have been
enough government handouts if they do not safeguard jobs and
industrial sites," Schifani said.
HORSE TRADING
Fiat has been discussing plant closures and output targets
with the government. Workers staged a 4-hour strike at Termini
and other Fiat factories on Wednesday.
Last week, a Fiat union source told Reuters the government
had received seven proposals for Termini, providing hope for
workers there. No details of the proposals nor the parties
involved are known.
Fiat has offered to move Panda production to Pomigliano,
Italy, from Poland in return for shutting Termini. A source told
Reuters last week the government may be willing to offer
incentives in exchange for the transfer of jobs to Italy.
Fiat also plans to suspend work at all its Italian plants
for two weeks from Feb. 22 to offset lower demand, which the
government has said would make talks on incentives tough.
Prime Minister Silvio Berlusconi said the government was
looking at the possibility of renewing incentives but: "Fiat
does not seem interested".
According to a report in Il Giornale newspaper, industry
minister Claudio Scajola and economy minister Giulio Tremonti
will meet on Thursday to discuss incentives for the car sector.
Fiat shares closed down 0.6 percent.
(Reporting by Philip Pullella and Maria Sheahan; Editing by Dan
Lalor)
($1 = 0.7207 euro)
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