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<p>FIAT: GLORY OF 50 YEARS</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>Submitted by:MR. SUYOG HAGIR</p> <p>Towards partial fulfillment of BMS course 2009-2010</p> <p>SUYOG | TYBMS</p> <p>1</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>BHAVANS COLLEGE OF MANAGEMENT STUDIES Andheri (west), MUMBAI DECLARATIONI, Mr. Suyog Hagir of Bhavans College of Management Studies of BMS (Sem 5) have completed the project on FIAT: GLORY OF 50 YEARS in year 2009-2010.</p> <p>The information submitted is true and original to the best of my knowledge.</p> <p>Date:</p> <p>signature of the student</p> <p>Place: Mumbai</p> <p>SUYOG | TYBMS</p> <p>2</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>CERTIFICATEI Prof. Riddi Sharma, hereby certify that Mr. Suyog Hagir, of Bhavans College of Management Studies has completed the project on FIAT: GLORY OF 50 YEARS in the academic year 2009-2010.</p> <p>__________________ Signature of Project coordinator</p> <p>__________________ Signature of Principal Dr. Mrs V.I. Katchi</p> <p>SUYOG | TYBMS</p> <p>3</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>ACKNOWLEDGEMENTDuring The Perseverance Of This Project, I Was Supported By Different People, Whose Names If Not Mentioned Would Be Inconsiderate On My Part. I would like to Extend My Sincere Gratitude and Appreciation to Prof. Riddi Sharma Who Initiated Me into the Study of FIAT: GLORY OF 50 YEARS</p> <p>It Has Indeed Been A Great Experience Working Under Her During The Course Of The Project For Her Invaluable Advice And Guidance Provided Through Out This Project. I Also Owe My Sincere Gratitude To Dr. Mrs V.I.Katchi Principal Of Our College.</p> <p>I Would Also Like To Thank The Following People Who Through Their Experience Have Enlightened Me On The Practical Aspects Of This Subject Without Whom The Study Would Not Have Been Carried Out Successfully.1. Prof. Riddi Sharma.</p> <p>2. Concord Motors &amp; Its Executive Staff. 3. Family &amp; Friends. I Would Also Like To Give My Sincere Gratitude To All My College Librarian Staff Because Of Whom I Am Able To Complete My Dream Project.</p> <p>SUYOG | TYBMS</p> <p>4</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>INDEX</p> <p>SR.NO1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 3.1 3.2 3.3 3.4 3.5 3.6 3.7</p> <p>TOPICExecutive Summery Purpose Of Study Objectives Scope Limitation Intro : FIAT INTERNATIONAL Evolution History Presence All Over The World Industry Glimpse Segment &amp; Market Share FIAL FIAT Value Chain FIAT Pest Analysis FIAT Porters Analysis SWOT Analysis RESEARCH Findings &amp; Analysis Recommendations &amp; Drivers For Strategic Solutions BIBLIOGRAPHY</p> <p>PAGE NO.</p> <p>44.6 5.1 5.2</p> <p>SUYOG | TYBMS</p> <p>5</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>CHAPTER 1</p> <p>SUYOG | TYBMS</p> <p>6</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>EXECUTIVE SUMMARYFiat Auto is a catastrophe and the group as a whole lacks strategic direction and is again becoming too complex to manage effectively."- Jurgen Pieper, Motor Analyst, Metzler Bank (Frankfurt), in April 2002.</p> <p>FIAT was one of the founders of the European motor industry. Right from the outset the company pursued two growth strategies that became the cornerstones for its later development: a strong international vocation and an innovative spirit, as seen in the technological quality of its products and the advanced production and organizational solutions it adopted. But in more than one century- activity, FIAT has meant much more than cars alone. In fact the company interpreted its vocation for the motoring world in an original manner, expressed by its commitment to all forms of mobility for people and goods: from cars to trucks, agricultural tractors, marine engines, aeronautical engines and, in more recent years, space launchers. Today Fiat is well known brand established into the mind set of the consumer and is amongst the most trusted brand too. Besides, producing cars Fiat has revitalized it self according to the Indian consumers and their needs. Fiat has truly being hero during its glorious time and in true sense is the one of the most reputed brand. In the era of competition and stiff cost cutting; FIAT would have definitely faced those problems as other auto brands have but none the less it stays in the Indian market forever.</p> <p>PURPOSE OF THE STUDYThe auto sector is very vast, still nascent as compare to developed countries and fastest growing sector. The purpose of the study is to understand/study brand FIAT and its long years up and downs journey into the Indian auto market.</p> <p>SUYOG | TYBMS</p> <p>7</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>OBJECTIVES To study strategies applied brand FIAT into Indian market. Understand various facets relating to FIAT and its models Study brand FIAT and strategies used by them. Understand reasons for FIAT failure and an attempt for its recover Through primary research, understand the position of brand FIAT vis--vis other auto brand into the same sector.</p> <p>SCOPEThe study of whole universe is not possible. Auto sector has very vast scope and cannot be defies. It is fastest growing sector, however recent disease of recession has also affected this sector. The report studies only the facets relating to brand FIAT thus the report scope is narrow and specific.</p> <p>LIMITATIONThe report limits itself to the study of brand FIAT and do not discuss the other brand. This is so as the project does to become vague and is specific to its study. Primary research methodology too focuses on brand FIAT and other auto brands into the segment.</p> <p>REPORT FLOW</p> <p>SUYOG | TYBMS</p> <p>8</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>CHAPTER 2</p> <p>SUYOG | TYBMS</p> <p>9</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>2.1 INTRODUCTION: FIAT INTERNATIONALFiat, an acronym for Fabbrica Italiana Automobili Torino, is an Italian automobile manufacturer, engine manufacturer, financial and industrial group based in Turin in the Piedmont region. Fiat-based cars are constructed all around the world, with the largest number produced outside Italy being built in Brazil. It also has factories in Argentina and Poland. Fiat has a long history of licensing its products to other countries regardless of local political or cultural persuasion. Joint venture operations are found in Italy, France, Turkey, India, Serbia and Russia. Fiat Group is the largest vehicle manufacturer in Italy, with a range of cars starting from small Fiat city cars to sports cars made by Ferrari, and vans and trucks ranging from the Ducato to Iveco commercial trucks. Besides Fiat Group Automobiles S.p.A, the Fiat Group automotive companies include Ferrari S.p.A., Iveco S.p.A. and Maserati S.p.A. The Fiat Group Automobiles S.p.A. companies include: Abarth &amp; C. S.p.A., Alfa Romeo Automobiles S.p.A., Fiat Automobiles S.p.A., Fiat Professional and Lancia Automobiles S.p.A.. Ferrari S.p.A. is 85% owned by the Fiat Group, but is run autonomously. The European Car of the Year award, Europe's premier automotive trophy for the past 40 years, has been awarded twelve times to the Fiat Group, more than any other manufacturer. Most recently the Fiat Nuova 500 has won the award for European Car of the Year 2008. Fiat models which have won European Car of the Year: 1967: Fiat 124 1970: Fiat 128 1972: Fiat 127 1980: Lancia Delta 1984: Fiat Uno 1989: Fiat Tipo 1995: Fiat Punto</p> <p>SUYOG | TYBMS</p> <p>10</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>1996: Fiat Bravo/Brava 1998: Alfa Romeo 156 2001: Alfa Romeo 147 2004: Fiat Panda 2008: Fiat 500</p> <p>In 2003, the Group restructured its core business area by focusing on manufacturing and service activities of the traditional motor vehicle sector. Today, the company has made up of nine Operating Sectors: Automobiles, Agricultural and Construction Equipment, Commercial Vehicles, Ferrari and Maserati, Metallurgical Products, Automotive Components, Production Systems, Publishing and Communications and Services. This new structure of the Group, also with Business Solutions (service company of the group) and ITEDI (Publishing &amp; Communications division of FIAT Group), ensures a total focus on the automotive industry.</p> <p>SUYOG | TYBMS</p> <p>11</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>2.2 EVOLUTION</p> <p>Fiat 3 CV (1899)</p> <p>Giovanni Agnelli founded Fiat in 1899 with several investors and led the company until his death in 1945, while Vittorio Valletta administered the day-to-day activities of the company. Its first car the 3 CV (of which only eight copies were built, all bodied by Alessio of Turin) strongly resembled contemporary Benz, and had a 697 cc (42.5 cu in) boxer twin engine. In 1903, Fiat produced its first truck. In 1908, the first Fiat was exported to the US. That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became somewhat popular in Europe. By 1910, Fiat was the largest automotive company in Italy a position it has retained since. That same year, a plant licensed to produce Fiats in Poughkeepsie, NY, made its first car. This was before the introduction of Ford's assembly line in 1913. Owning a Fiat at that time was a sign of distinction. A Fiat sold in the U.S. cost between $3,600 and $8,600, compared to US$825 the Model T in 1908. Upon the entry of the U.S. into World War I in 1917, the factory was shut down as U.S. regulations became too burdensome. At the same time, Fiat had to devote all of its factories to supplying the Allies with aircraft, engines, machine guns, trucks, and</p> <p>SUYOG | TYBMS</p> <p>12</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>ambulances. After the war, Fiat introduced its first tractor, the 702. By the early 1920s, Fiat had a market share in Italy of 80%.</p> <p>Corso Dante plant</p> <p>Lingotto factory (1928)</p> <p>Mirafiori plant</p> <p>SUYOG | TYBMS</p> <p>13</p> <p>FIAT: GLORY OF 50 YEARS Lingotto factory (today)</p> <p>In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company. However, the Italian Socialist Party and its ally organization, the General Confederation of Labor, in an effort to effect a compromise with the centrist parties ordered the occupation ended. In 1922, Fiat began to build the famous Lingotto car factory the largest in Europe up to that time which opened in 1923. It was the first Fiat factory to use assembly lines; by 1925, Fiat controlled 87% of the Italian car market. In 1928, with the 509, Fiat included insurance in the purchase price. Fiat made military machinery and vehicles during World War II for the Army and Regia Aeronautica and later for the Germans. Fiat made obsolete fighter aircraft like the biplane CR.42, which was one of the most common Italian aircraft, along with SavoiaMarchettis, as well as light tanks (obsolete compared to their German and Soviet counterparts) and armored vehicles. The best Fiat aircraft was the G.55 fighter, which arrived too late and in too limited numbers. In 1945 the year Mussolini was overthrown the Italian Committee of National Liberation removed the Agnelli family from leadership roles in Fiat because of its ties to Mussolini's government. These were not returned until 1963, when Giovanni's grandson, Gianni , took over as general manager until 1966, as chairman until 1996. 2.2.1 GIANNI AGNELLI Among the younger Agnelli's first steps after gaining control of Fiat was a massive reorganization of the company management, which had previously been highly centralized, with almost no provision for the delegation of authority and decision-making power. Such a system had worked effectively enough in the past but lacked the responsiveness and flexibility made necessary by Fiat's steady expansion and the growth of its international operations in the 1960s. The company was reorganized on a productline basis, with two main product groups one for passenger cars, the other for trucks and tractors and a number of semi-independent division and subsidiaries. Top management, freed from responsibility for day-by-day operations of the company, was</p> <p>SUYOG | TYBMS</p> <p>14</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>able to devote its efforts to more far-reaching goals. In 1967, Fiat made its first acquisition when it purchased Autobianchi; with sales amounting to $1.7 billion, it outstripped Volkswagen, its main European competitor, and in 1968 produced some 1,750,000 vehicles while its sales volume climbed to $2.1 billion. According to Newsweek in 1968, Fiat was "the most dynamic automaker in Europe...[and] may come closest to challenging the worldwide supremacy of Detroit." Then, in 1969, it purchased controlling interests in Ferrari and Lancia. At the time, Fiat was a conglomerate, owning Alitalia, toll highways, a typewriter and office machine manufacturer, electronics and electrical equipment firms, a paint company, a civil engineering firm, and an international construction company. Following up on an agreement Valletta had made with Soviet officials in 1966, Agnelli constructed the AvtoVAZ plant in the new city of Togliattigrad on the Volga. This began operation in 1970, producing a local version of the Fiat 124 as the Lada. On his initiative, Fiat automobile and truck plants were also constructed in industrial centers of Yugoslavia, Poland, Bulgaria, and Romania. In 1979, the company became a holding company when it spun off its various businesses into autonomous companies, one of them being Fiat Auto. That same year, sales reached an all-time high in the United States, corresponding to the Iranian Oil Crisis. However, when gas prices fell again after 1981, Americans began purchasing sport utility vehicles, minivans, and pickup trucks in larger numbers (marking a departure from their past preference for large cars). Also, Japanese automakers had been taking an ever-larger share of the car market, increasing at more than half a percent a year. Consequently, in 1984, Fiat and Lancia withdrew from the United States market. In 1989, it did the same in the Australian market, although it remained in New Zealand.</p> <p>SUYOG | TYBMS</p> <p>15</p> <p>FIAT: GLORY OF 50 YEARS</p> <p>2.3 HISTORYThe history of Fiat began many years ago, at the dawn of Italian industrialisation, in which the company has always played a leading role. From that moment on, the Fiat brand spread throughout the world and developed extensively. Today, following a change in corporate culture and mentality, the name Fiat is still fraught with meaning, and not only on account of the cars we produce - cars with attractive styling and exciting engines, cars that are accessible and improve the quality of everyday life - but also on account of our heritage and tradition: let's take a stroll back in time through the brand's history. 2.3.1 From 1899 - 1911 Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of "Societ Anonima Fabbrica Italiana Automobili Torino" was signed. Among the members of the Board of Directors, Giovanni Agnelli stood out in the group of investors and won recognition for his determination and strategic vision. In 1902 he became the Managing Director of the company. The first factory was opened The first factory was opened in 1900 in Corso Dante. 150 workers were employed there and produced 24 cars, among which the 3/12 HP, not yet fitted with reverse gear. The Fiat logo, oval on a blue background and designed by Biscare...</p>