Fiat Auto reorganizaiton: New Name, growing distinctiveness

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Thread: Fiat Auto reorganizaiton: New Name, growing distinctiveness

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    Fiat Auto reorganizaiton: New Name, growing distinctiveness

    I thought this was intersting news for any Tifosi Italiani out there.

    Also as a side note, this is good news for Lancia as a brand, too. Right now, Lancia is kinda of a sub-division of Fiat as they are currently set up. As such, Fiat's needs come before Lancia's. Arguably this is the way is SHOULD be since Fiat is the larger brand. But many Lancisti argue that this leaves them with tartered up Fiats instead of elegant Lancias (sounds like the Mercury argumenet again, doesn't it?).

    In this new structure, Lancia should get equal attention. And since they are all still part of the Fiat Group Automobiles, SpA, there will obviously be continued cooperation.

    Interesting way to re-align things (especially if you look at the way GM/Ford/Etc does it with "division/brand heads/managers" rather than "CEOs", etc).

    Quote Originally Posted by MSN Money

    Fiat SpA Reorganizes Auto Business

    MILAN, Italy (AP) - Fiat SpA announced Tuesday that it was reorganizing its automobile business, creating four new companies for its auto brands and renaming the auto division Fiat Group Automobiles SpA.

    The changes, which take effect Feb. 1, reflect the importance of the auto business to the company after turning around the once unprofitable unit, Fiat said in a statement.

    The current heads of the four brands will become chief executive officers of the new subsidiaries: Fiat Automobiles SpA, Alfa Romeo Automobiles SpA, Lancia Automobiles SpA and Fiat Light commercial Vehicles SpA. Until now, the brands were units of Fiat Auto.

    The name change comes amid increasing speculation by analysts that Fiat might spin off its auto businesses into a separately listed unit, having cleaned up its finances thanks to a good sales performance by its flagship compact car, the Grande Punto, and better cost controls.

    Last week brokerage UBS upgraded its price target for Fiat to euro20 (US$26.08) from a previous euro16 (US$20.86), citing among other factors the potential value in a spinoff of the auto business. Fiat shares were trading up 0.6 percent at euro15.78 (US$20.58) on Tuesday.

    Fiat SpA Chief Executive Sergio Marchionne has said that while the company's goal is to have the finances of the auto business improved enough to match those of a stand-alone company, no decisions have been made about a spinoff.

    Fiat, which reports earnings for 2006 on Thursday, said the new name of the auto business "identifies a key area of activity that has recently undergone profound transformation, featuring a newly streamlined structure that is more solid and compact than before."

    Quote Originally Posted by Forbes

    Fiat reorganizes car unit to reinforce individual brand names

    MILAN (AFX) - Fiat SpA said it will reorganise its car business by making the three main car brands and the light commercial vehicle division a more unified auto division.

    The move follows Fiat (nyse: FIA - news - people )'s decision yesterday to liquidate its Dutch Fiat Auto Holdings BV company with a view to shortening the chain of control.

    The company said it will rename its car division as Fiat Group Automobiles SpA, which will own 100 pct of the newly set up Fiat Automobiles SpA, Alfa Romeo Automobiles SpA, Lancia Automobiles SpA and Fiat Light Commercial Vehicles SpA.

    The current heads of the four brands will become the new CEOs of the newly set up companies.

    'Formation of these four new companies must be interpreted in view of the growing distinctiveness of the brands, enhanced values and reinforcement of their competitive capacities,' Fiat said.

    "La vita č come un albero di Natale..c'č sempre qualcuno che ti rompe le palle!"

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    Re: Fiat Auto reorganizaiton: New Name, growing distinctiveness

    That's interesting. So now this leaves open one huge question in my mind: will it change the product? All I'm wondering is that thanks to the new structure, hopefully there would be a possbility of much higher quality vehicles than before. The only reason why I ask is that I'm kind of wary about changing structure - look at BL->MGR, they changed the structure of that company so many times and yet the quality did not improve (with some exceptions, like the Rover 75). This will be interesting for sure. However, I think that soon FIAT will have to start thinking in the long term. An example would be one of the Lancia threads you posted that went on and on, but it was almost like thinking ahead. FIAT should start doing that now. I would hope that the first thing they do is send customer satisfaction surveys to all their current and former customers to see what they liked and disliked about their FIAT, Alfa, Lancia, Ferrari, or Maserati car. From there, they should use what the surveys tell them so that they improve the brand and the brand experience - maybe going after bad dealers, for one. Then, FIAT should get its priorities straight. Hopefully this would work in time for the speculated return of FIAT, Alfa, and Lancia to North America.

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