Fiat Crisis Management
Crisis Management
FIAT
The Italian automobile company FIAT is synonomous with success, with brands such as Ferrari, Maseratti, Alfa Romeo and the FIAT brand, one usually thinks of class and success when the brand is mentioned. By and large the FIAT brand has been suuccesful for over one hundred years, the group's activities were primarily focused on the industrial manufacturing of cars, industrial and agricultural machinery. With time the group has diversified into other fields, and it now has activities in a broad range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant global interests, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of these employees are outside Italy. However in recent years the company has fallen on hard times. Faced with a multitude of threats including, rising steel prices, increased competitveness from Japanese and Korean manufactureres and a strong Euro, FIAT endured heavy losses in sales and turnover since 2001. The company lost 445 million euros in 2001 and just over 820 million euros in the first half of 2002, not to mention sales in Europe and Italy falling by roughly twenty percent and the FIAT factories operating at only seventy per cent of its maximum capacity. Furthermore chances of a recovery through the Latin American markets were scuppered due to the financial crises there. However a management overhaul, large scale redundancies and the release of many new cars on the market has helped FIAT to drag itself out of a deep crisis that was so significant it brought a large scale downturn in the Italian economy.
COMPANY HISTORY
FIAT was founded on the eleventh of July 1899 at Palazzo Bricherasio in Turin and the company charter of "Societа Anonima Fabbrica Italiana Automobili Torino" was agreed and signed. The company was founded by a group of investors
FIAT
The Italian automobile company FIAT is synonomous with success, with brands such as Ferrari, Maseratti, Alfa Romeo and the FIAT brand, one usually thinks of class and success when the brand is mentioned. By and large the FIAT brand has been suuccesful for over one hundred years, the group's activities were primarily focused on the industrial manufacturing of cars, industrial and agricultural machinery. With time the group has diversified into other fields, and it now has activities in a broad range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant global interests, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of these employees are outside Italy. However in recent years the company has fallen on hard times. Faced with a multitude of threats including, rising steel prices, increased competitveness from Japanese and Korean manufactureres and a strong Euro, FIAT endured heavy losses in sales and turnover since 2001. The company lost 445 million euros in 2001 and just over 820 million euros in the first half of 2002, not to mention sales in Europe and Italy falling by roughly twenty percent and the FIAT factories operating at only seventy per cent of its maximum capacity. Furthermore chances of a recovery through the Latin American markets were scuppered due to the financial crises there. However a management overhaul, large scale redundancies and the release of many new cars on the market has helped FIAT to drag itself out of a deep crisis that was so significant it brought a large scale downturn in the Italian economy.
COMPANY HISTORY
FIAT was founded on the eleventh of July 1899 at Palazzo Bricherasio in Turin and the company charter of "Societа Anonima Fabbrica Italiana Automobili Torino" was agreed and signed. The company was founded by a group of investors