Fiat SpA (F.MI) must keep five plants in Italy if it goes ahead with a plan to expand internationally to create one of the world's largest car makers, Industry Minister Claudio Scajola said Tuesday.

"For the government there can't be exceptions to Fiat maintaining five plants in Italy," Scajola said.

After taking a stake in Chrysler LLC last month, Fiat is seeking to buy General Motor Corp.'s (GM) European assets and merge them with its auto unit.

-By Luca Di Leo, Dow Jones Newswires; +39 06 697 66921; luca.dileo@dowjones.com