See? A car company can turn around. Just ask Fiat

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Thread: See? A car company can turn around. Just ask Fiat

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    6.2 Liter LS9 Supercharged V8 1931Chevy's Avatar
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    See? A car company can turn around. Just ask Fiat
    When it comes to turnarounds, Fiat serves as a case study. The Italian institution that rules over Fiat, Lancia, Alfa Romeo, Ferrari, and Maserati, trucks, agricultural equipment, construction equipment, and automobile components, lost $1 billion in 2000. Contrast that with 2006, when it posted a 35% jump in revenues year-on-year, and its operating profit was $384 million -- a far cry from the $332 million loss of 2005. Fiat's current market cap is more than that of GM and Ford combined in Europe, at $32.5 billion.

    Sergio Marchionne, CEO of the Fiat Group, is the man who led the charge, beginning in 2000 when he was hired from a Swiss firm. CNN has a lengthy profile on the Italian that delves into how he did it. The story will be familiar to all of us: "The car company had the talent, knowledge and skills, but it lacked leadership." It was "a problem of culture - big offices, big waste, and nobody responsible for anything." Too many vehicle discounts. Too many platforms. Too many people doing the same thing across brands. Cars not selling enough. Models not updated. To fix it, Marchionne, an outsider to the auto industry, sheared away excess layers of management, streamlined the design process, rationalized platforms, boosted production, didn't pick fights with the unions, forged partnerships in China, India, Russia, and Turkey, and got out of the partnership with GM (for which Fiat made $2 billion).
    “We are masters of our own destiny,” he said. “We make our own decisions. And we intend to keep it that way.” Bill Ford May/09
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    Re: See? A car company can turn around. Just ask Fiat

    Yup - Fiat has had a right turn-around and good for it. The Bravo should do well if the Grande Punto and Panda are anything to go by aswell.

    I await some stupid comment from some silly idiot who says that Fiat would be dead if they didn't get $2 billion from GM.

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    Re: See? A car company can turn around. Just ask Fiat

    To gag those kind of comments - remember how GM got a wad of cash for GMAC?

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