Fiat, Auto Company In Crisis Or Thinking Ahead?

1090 words - 4 pages

A hundred years of history is a hundred years of ideas determination and success for Fiat. Fiat, once the largest carmaker in Europe implemented diversification of production and focused on the most promising markets which has characterized its development through its entire one hundred- year history.Founded in Italy, July 11, 1899, Giovanni Agnelli was Managing Director of Fiat, still a small company but with great ideas. Fiat opened its first factory in 1900 and employed 150 people and produced 24 cars. Eight years after opening their factory doors they expanded their reach to the US and production started and sales took of. Mr. Agnelli was a visionary and saw potential in Fiat expanding to new markets. Fiat has gone through two World Wars, and mainly through this period of time, cars were mainly produced to supplying the army with vehicles and not so much the public.After the second World War, Fiat had to rebuild their factories which was destroyed by the war, but not long after everything was rebuild and constructed, they started rolling out the cars on the production line and started showing profits again.Fiat was one of the car makers at the time who first introduced air vented vehicles on mass production, a vision by Mr. Agnelli.In the late 1950's Fiat found itself in an economic boom with sales of its cars and farm equipment profiting very well. This stage in time management decided that they have to increase factories, as the local ones could not handle the increase in demand.(Global Factories of Fiat)Factories was set up abroad to handle the extra influx of car demands. This period in time Fiat was the driving force of the Italian economy, and still number one car maker of Europe.As the economic crisis hit the globe in 2007, all companies was wary of this phenomenon. But as time move on, and sales reports started showing negativity on the balance sheet, companies sprung at opportunities to align with other car manufacturers to stay afloat and positive. Fiat, now standing at the six largest car makers in Europe, has had to find new ways and acquisitions to keep it afloat. At Fiat things was not going well from the late 1990's until 2004. In 2002 Fiat lost nearly €4 billion, and started making investors very uneasy. They called for management to be shaken up, and to be improved.Fiat is Italy's largest carmaker and the country's biggest private-sector employer, with 80 000 worker in Italy, and 162 000 worldwide. If Fiat would go under, Italy will have a major unemployment rate within the motor car sector. In 2004 new management was appointed, and 12 of the 19 head management were replaced. This paved the way for new elected CEO, Sergio Marchionne to save Fiat from this doldrums it found itself in and to turn it around to be one of Europe's top car makers again.As a dual citizen of Canada and Italy Mr. Marchioness was well educated and trained as a charted accountant. He would not find the job easy at first, as Fiat showed a negative...

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