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ROME (AP) — Fiat says it has signed flexible labor contracts that the Italian automaker says are conditions for €20 billion (more than $26 billion) in investments over the next three years.

Fiat SpA CEO Sergio Marchionne says in a statement that the deal reached Tuesday between Fiat and the unions marks "a historic development for our company and its workers."

Similar deals had already been approved by workers at Fiat's Mirafiori factory in Turin, the company's hometown, and at a factory in Pomigliano, southern Italy, after rank-and-file wirjers approved flexible rules the company insists are essential to boosting production. Marchionne, who is also Chrysler's CEO, say the agreements are key to keeping the carmakers competitive in world markets.

 

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