UPDATE 1-Fiat offers hefty output boost, says will be costly


* Fiat plans exceed government targets on Italy output * Needs hefty investments, high labour flexibility -CEO * No further word on government incentives to buy cars (Recasts first sentence, adds details of plan, changes dateline from MILAN) By Giuseppe Fonte ROME, Dec 22 (Reuters) - Fiat hopes to boost car production in Italy by more than half to as much as 1 million units in 2012, but it will need huge investment, government support and greater worker flexibility, its CEO said on ...

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