It's easy for us to forget how much influence unions can have - Italy has a history of placating the unions and putting off having a confrontation, with the results that we're discussing - high absenteeism, poor productivity, lack of flexibility in the labour market and so on, as well as interruptions from strikes (I'm not making an anti-union case, just stating what's happened - the protective practices and 'closed shop' attitude is just as prevalent in many of the upper echelons of Italian industry as well, with just the same damaging results). As a matter of interest, the same attitudes prevail in areas such as planning and local government, with possibly even more damaging results.
I'm afraid I'm pessimistic about Marchionne's chances of making any real progress, he's taking on interests that are too firmly entrenched. It's the same malaise that's landed Greece where it is and the innovative, productive, entrepreneurial activities that are such a strength of Italian industry, and life, are just too weighed down by the opposite forces - I say that as a real friend of Italy and, especially, the Italians - we've had a house there since the late 1980s and are as at home there as in England, but there are certain aspects of it that drive you to distraction.
Italy also has factories in Brazil (the 1300cc engine that was in cars like the 127 Sport and Autobianchi 112 Abarth came from that operation.)