Sergio Marchionne, Fiat’s chief executive, seems to thrive on negotiating political minefields. After lecturing the car industry on how it must shrink, he is attempting to grapple with Fiat’s chronic overcapacity at home. The obstacles are many: powerful unions, a jobs-for-life culture, and Fiat cars’ place in the Italian psyche. As prime minister Silvio Berlusconi recently observed, many Italians “kissed [their] first girl in a Cinquecento”.

The economic backdrop, moreover, makes job cuts acutely sensitive. The economy is forecast to contract more than 5 per cent this year, one of the eurozone’s worst performers. Unemployment hit 7.3 per cent in the first quarter and may peak at more than 9 per cent early next year.