Abstract

In this paper we examine FIAT Group evolution in the last decade. In this period the most important Italian company changed substantially policies, strategies and competitive positioning. The process of change was dramatically fastened since 1998 also as a consequence of the arrival of a new top management team. Actually this period might be described as a silent revolution. FIAT increased dramatically its presence in the global market, while decreasing its role in the Italian economy, service activities were expanded and a very significant repositioning was pursued via divestitures and acquisitions. Today FIAT is focussed mainly on cars and agricultural equipment (two third of total revenues) with an insurance company (Toro) as a store of value. Notwithstanding all the changes in policies, strategies and management, the results in the last three years have been disappointing with low profits, high and rising indebtedness and decreasing market shares. The most critical sector is represented by the car division (FIAT Auto) and the alliance with General Motors is meant to fix these problems. The recent successful acquisition of Montedison offer an opportunity to diversify into the energy business but FIAT is still fully engaged in trying to turn around the historic car division after many years of gradual but constant decline.