Case Study Analysis

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ABE JUNE 2013 INTERNATIONAL BUSINESS CASE STUDY ANALYSIS
FIAT AUTOMOBILES S.p.A

OVERVIEW
Fiat Group Automobiles S.p.A manufactures and markets automobiles, light commercial vehicles and related products in Italy, Europe, South America and Turkey. The company was formally known as FIAT Auto S.p.A and changed its name to Fiat Group Automobiles S.p.A in February 2007. The company was founded in 1979 and is based in Turin, Italy. Fiat Automobiles S.p.A operates as a subsidiary of Fiat S.p.A.

TIMELINE
1899
* Company start up by Gianni Agnelli and other investors. They formed FIAT – Fabbrica Italiana Automobili Torino. (Pg3 Par1)

1900
* First Fabbrica Italiana Automobili Torino factory was opened in Carso Dante, Italy with a 150 workforce. (Pg3 Par1)

1922
* FIAT opened what was to be the largest factory in Europe with unique five floor assembly line. (Pg3 Par2)

Mid 1960s
* Growth in production in both exports and domestic sales. * Established several factories in southern Italy. (Pg3 Par3)

1970s
* Started development of electric vehicles. (Pg9 Par3)

1972
* Concept car Fiat X1/23 was shown at Turin Motor Show. (Pg9 Par3)

1978
* Introduced Robogate, an innovative and flexible robotic system used for assembly work, to remain competitive. (Pg3 Par5)

1978 to 1990
* Set up of numerous operations as independent companies. (Fiat Avio, Fiat Engineering, Comau, Fiat Ferraviaria, Magnet Marelli and Teksid). (Pg3 Par6)

1990s
* Asian car manufacturers entered the EU car manufacturing market, as a result Fiat expanded internationally. (Pg3 Par7)

2000
* Market share dropped from 9.4% to 5.8% (Pg3 Par9)

2004
* Sergio Marchionne appointed as Chief Executive. (Pg3 Par9)

2007
* Jan – Fiat Automobiles S.p.A. formed. (Pg3 Par1)

2008
* Started test with Brazilian electric companies, Cemig and Itaipu for electric vehicles. * Showed phylla concept (urban vehicle which showcases many environment friendly technologies) and the bugster concept (two-seater off road vehicle) in Brazil. (Pg9 Par3)

2009
* Jan – announced Fiat and Chrysler intention to form global alliance (Pg3 Par10) * Mar – market share rose to 9.1% (Pg3 Par9)
* Apr – Fiat announced the signing of a series of agreements to form global strategic alliance with Chrysler. (Pg4 Par2)

2010
* Mar – 50:50 joint venture with GAC in China to build a new factory to produce Fiat Viaggio. (Pg5 Par4)

2011
* Launch of 500c in the US and Canada. (Pg4 Par3)

2012
* May – Chrysler Australia Group appointed as distributor for Fiat and Alfa Romeo in Australia. (Pg4 Par2) * Investments were cut in Europe. (Pg5 Par1)
* Formed alliance with Mazda to develop and build new roadster for Madza and Alfa Romeo (Pg4)

ORGANISATION

Car manufacturing company
Subsidiary (Parent Company – Fiat S.p.A)
Company Limited by shares (S.p.A)
Home region is Europe, Home market is Italy.
In existence for over 100 years (sustainability)
Key initiatives – New Product Development, Innovation, Ethnocentric, Growth Decision making – The Group Executive Council (centralised)

COMPANY STRATEGIES

GROWTH

Acquisitions
Acquired popular Italian brands, Lancia, Ferrari, Alfa Romeo and Maserati.

Alliances
Global alliance with Chrysler
Alliance with Mazda
Alliance with Brazilian Electric companies, Cemig and Itaipu (to develop electric cars)

Joint Ventures
Chrysler Australia Group (for distribution in Australia)
50:50 joint venture with GAC in China
Also, as listed on Page 13

ORGANISATIONAL BRANDING

Strong brand in home market of Italy (Pg 3 Par2 and 3)
Alliance with GAC in China gives Fiat strong presence and competitive position. (Pg5 Par3)

COMPANY STAFF
PESTLE ANALYSIS

Political/Legal| Economic|
* US gov’t loan to Crysler in 2009 when sales fell dramatically (intervention to bail out Chrysler). * Trade barriers kept Fiat out of...
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