Product details

Fiat Auto, the US$24 billion flagship company of Italy''s largest industrial group Fabbrica Italiana Automobili Torino (FIAT), has accumulated US$9.3 billion in net losses from 1999 to 2003, and the Fiat group is struggling to turnaround its auto business. Fiat was established in 1899 and the group''s core business is automobile manufacturing. Over the years, Fiat Auto has produced some very popular passenger car models but the company''s profits have been on a decline since 1995. The company''s problems stem from inflexible production lines producing only one model, huge production overheads, and unyielding labour unions leading to constant government intervention and a lack of any research and development and innovation policy. The case study explores the reasons for the decline of the company and the turnaround strategies that have been implemented since 1999. The case also helps in understanding the various factors that have resulted in the failure of the turnaround strategies and outlines the ambitions of the management of Fiat to resurrect the company and become a major player in Europe''s passenger car market. A structured assignment ''304-451-4'' is available to accompany this case.