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Italy May Renew Auto Incentives

Italian Premier Silvio Berlusconi said Wednesday his government is willing to consider renewing incentives for auto industry at the end of the year if necessary.

ROME (AP) -- Italian Premier Silvio Berlusconi said Wednesday that his government is willing to consider renewing incentives for the auto industry at the end of the year if necessary.

The comments drew immediate praise by Fiat and Chrysler CEO Sergio Marchionne, who has said that dropping the incentives, which have helped the auto industry through the crisis, at the end of 2009 would be disastrous for automakers.

The government's plan, passed in February, offers incentives for people trading in polluting cars at least 10 years old and for buyers of eco-friendly cars.

Berlusconi promised that his government would assess the situation "responsibly," crediting the incentives currently in place with supporting the industry.

"If in due time -- when the current measure expires I believe at the end of the year -- renewing the measure is necessary and convenient, the government will do its part," Berlusconi said. He was speaking in a call-in interview to a morning TV news show.

Marchionne, attending a carmaker meeting in Rome hours later, welcomed Berlusconi's comments, saying "I've appreciated what he said."

"We are willing to work ... to find a solution to the question of incentives for next year and for 2011," Marchionne said. He added, however, that the incentives should be gradually reduced between 2010-11, according to the ANSA and Apcom news agencies.