Monday, February 7, 2011

Turin and Fiat: Italian wedding

If the agreement between Fiat and Chrysler are fully realized and the results in terms of product development and operating margin will be in line with the plans, it is very likely that the "headquarters" of the group to become as many markets will be of interest. Fiat "Italian" has been historically linked to Turin from a kind of marriage, but since becoming American (and global) has the same Fiat decided it was "escapade" in Detroit, so much to establish a home there more and more important .

And if the development plan on the big emerging markets like South America and Asia will be successful, will undoubtedly logical and entirely predictable that the Group has also there of the headquarters that will maximize the ability to act effectively on the market so fundamental in the global competition as Brazil, China and India.

It seems a predictable and planned business strategy, so logical and obvious that in a normal world the nod in this direction of the top Fiat was at most a few lines on the subject of daily flights and the average car. But he deserved a front page headline in the Corriere della Sera, the second and third page devoted entirely to this news so sensational (!).

The news is that in Turin next year will no longer be the only ones in the group, but there will be three more ... So what? God forbid that the operational strategies were not followed and implemented specifically in markets that have very different characteristics. Think of the European market, mature, highly competitive, which is already a success keep their market share or increase it by 2 or 3%.

The European market is dominated by the German premium manufacturers - Mercedes, BMW and Audi - and that too in the overall market for small, medium and compact, has the player in the Volkswagen brand. One of North America - USA, Canada and Mexico - is instead the market in which the resumption of large American manufacturers generalist is faced with the strong position of Japanese and Asian brands, a market dominated by extremely diverse in the pick-up , medium and large sedans, the full-size SUV.

South America, mainly on the development of the large Brazilian market, is a land of global confrontation with mainstream European manufacturers - Fiat and Volkswagen - setting to one, but with potential space for the Asian and American manufacturers. Asia is finally embracing a view of the car market of huge potential, ranging from Japanese domination of Toyota, the market low cost India the immense, the astounding rise of China has become the first global market for premium German manufacturers and new Eden for all manufacturers.

In your opinion, it is possible that a global player that aims to be a player in markets with very different characteristics may have a single headquarters? In Turin, then? But let's be serious please. But no, we start with the pathetic story of the link between Turin and the Fiat (Fiat, but what then?), With the deception of the evil Marchionne, the "Canadian" who wants to take jobs away from Italy, with the statements out instead of politicians who for the most part they are simply ignorant on the subject and in general the rules of the market.

Could not be avoided yet another reference to a "Fiat continues to live on Italian public money and financial resources (which?) To move the head of the company in the U.S. and production in low cost countries." Daunting, we should all cheer for a management run that allowed Fiat to revive a moribund by comparison with the great ambitions as Volkswagen, Toyota, GM, Ford, PSA, Renault Nissan, which has close to Fiat / a Chrysler 2010 while still difficult and no new products to the sixth place among the manufacturers in the world, ahead of SAP, and yet there are still those who believe they speak to the world thirty years ago, which, fortunately, no longer exists.

If they are equal to the task, we welcome the four "heads" Torino will have everything to gain.

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