Fiat is a sizeable car maker - as of 2009 ranked the world's 9th biggest - but things are not going well for Fiat's Italian plants, where output has dropped to 50% of potential capacity. So what's up with Fiat? As with so many European auto makers that have a heavy focus on EU markets, there simply aren't enough Europeans buying cars. If the situation carries on like this, Fiat's chief executive Sergio Marchionne says two plants in Italy will have to close.

Such an outcome would have very bad consequences for the local economies that surround these factories, and would also mean that Fiat has more plants outside Italy than in it. It's not only a question of being able to build cars more cheaply in other countries - Fiat has one very efficient factory in Poland - it's also about having factories where the target market are - Fiat has another very efficient plant in the US - and the United States, claims Marchionne, is where Fiat should be looking.

He's especially keen on introducing the Alfa Romeo to America, where he believes it will enjoy a lot of success. This would be good news for the firm's Italian plants, as the car is currently made there.

But a pair of huge question marks remain over Fiat's Italian factories. With luck, they and many thousands of jobs will be saved.

The next time you're taking a driving holiday in Italy (with short term European cover from startrescue.co.uk, naturally), spare a thought for the many Italian workers whose jobs are under threat.