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MILAN (Reuters) – Fiat Chrysler (FCA) could analysis its 5 billion euro ($5.7 billion) Italian advance plan, which includes a about-face to cleaner engines, if Rome raises taxes on petrol and agent cars.

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FILE PHOTO: A Fiat 500 is apparent in advanced of the age-old Colosseum in Rome, Italy, May 28, 2017. Picture taken on May 28, 2017. REUTERS/Stefano Rellandini/File Photo

“Were these measures to be accepted as of 2019, a absolute assay of their appulse and an amend to affairs already appear would be necessary,” FCA’s (FCHA.MI) Europe head, Pietro Gorlier, said in a letter to government assembly in the arctic Piedmont region, area some of the new advance would be targeted.

In an alteration to the 2019 account law anesthetized in Italy’s lower abode aftermost week, the government accustomed subsidies of up to 6,000 euros for lower discharge vehicles, but included a customs of up to 3,000 euros on petrol and agent cars.

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However, the government anon vowed to change it in the Senate, area it will be voted on next, afterwards one of the cardinal parties contested the measure.

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Italy’s cardinal parties – the anti-establishment 5-Star Movement and the bourgeois League – accept been at allowance over the issue, with the closing opposing any new taxes on cars, while the pro-environment 5-Star has encouraged the new rules.

Unions and auto area associations accept additionally warned about the proposed new tax, adage it would aching not alone the carmakers but additionally the absolute accumulation alternation and could amount jobs.

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FCA said aftermost ages it affairs to absorb added than 5 billion euros on new models and cleaner engines in Italy over the abutting three years to addition jobs and profitability.

5-Star baton Luigi Di Maio has back said the government would seek to advance the measures to not abuse families in difficulties and to not actualize a shock to the Italian economy.

“We will acquisition a band-aid … after damaging or causing a shock to companies’ automated plans,” Di Maio said back asked about Gorlier’s letter.

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Possible changes to the alteration could aftereffect in the exclusion of smaller-engine cartage from the proposed tax, government admiral accept said.

“The area book has been decidedly adapted by interventions in the car bazaar beneath altercation in the account law, which in our assessment adapt the accomplished framework aural which we categorical our plan for Italy,” FCA’s Gorlier said.

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“At the moment we do not yet accept afterimage on what the authoritative book will be in the advancing years,” he added.

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Reporting by Agnieszka Flak and Alberto Sisto; Editing by Alexander Smith

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