FIAT

3 Pages 874 Words

FIAT
The subject of discussion was the design for the new Fiat Tipo, and a critical product aimed at replacing Fiat “Uno”. Cantarella (the general manager) had expressed doubts about the Tipo B’s design concept. He found the car boxy and uninspiring, and was intrigued by the possibility of changing the direction of the project. In addition, Cantarella was also considering suggesting changes in the project’s organization.

Fiats models, which flooded the pre-war Italian market, consolidated Fiat’s focus on small, inexpensive, and efficient automobiles. Professor Vittorio Valletta, who followed Angelli as CEO concentrated on the lower segments of the automobile industry, because he thought it was safe and appropriated strategy. Vittorio combined low cost automobile concepts, lean, simple designs, and substantial investments in advanced production technologies. Giovanni Angelli nephew of senator Angelli replaced Valletta. He strongly felt a need to modernize Fiat and enhance its competitiveness at the international level. For the first time in Fiat’s history, Angelli brought in consultants, who helped with the modernization of Fiat’s managerial systems, including the implementation of major organization changes. Angelli’s renewal of Fiat’s management and production systems was deeply affected by Italy’s rapidly deteriorating political situation.

Fiat’s automobile division was separated form its parent company and turned into wholly owned subsidiary, Fiat Auto SpA. The group was active in a variety of industrial sectors, from aerospace to mass merchandising and retailing, and from chemicals to financial services. Vittorio Ghidella, an engineer, was made CEO of the automobile subsidiary. Ghidella aimed to reinforce Fiat’s traditional strategy of producing the “car for everyone” by developing a sophisticated manufacturing infrastructure and improving the service and dealer network. His goal was t...