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Fiat Threatens to Make Alfa Romeos Outside Italy on Labor Rules

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Fiat SpA threatened to move production of new Alfa Romeo models abroad as Italy’s labor rules hamper its ability to compete with Bayerische Motoren Werke AG for luxury-car buyers.

Fiat has put new investment in Italy on hold as it pushes Prime Minister Enrico Letta’s government to adopt reforms that help manufacturers with clearer work rules after Fiat’s labor contracts suffered a setback in Italian courts, Chief Executive Officer Sergio Marchionne told reporters yesterday in Turin.