Abstract

The Italian automotive industrial policy has been analysed in two diverse phases: first, in July 2002, when the Italian Parliament carried out an investigation of this industry by consulting manufacturers and experts. This study concluded that the industrial policy for this sector should primarily support enterprises' R&D and innovation processes. Second, in November 2002, when during the height of its crisis FIAT submitted a plan for restructuring to Government and Union representatives, based on annual investments of 2.6 billion Euro, the reinforcement of points of sale, the closing down of selected manufacturing plants and a reduction of thousands of personnel. Seeing as the Unions were not willing to sign any agreement, the Italian Government signed a contract directly with FIAT and agreed to provide them with labour and R&D incentives.