Abstract

For decades the Italian government supported Fiat; yet since the Nineties, internal changes due to the implosion of the Italian political system and Europeanisation, led to the phasing out of state aid. The loss of public support could have led Fiat to deep crisis, but it in fact provided the impetus for the company independent growth and its transformation from a national to a global player. Its ties with the state gradually loosened, and Fiat's growth on an international level has led to an increase in its structural power. The article analyzes the change of Fiat's strategy with respect to the government and the potential impact of a downsizing of its activities in Italy.