Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Fiat shopping experience:
1. Compare - without doubt the biggest advantage that the Fiat offers shoppers today is the ability to compare thousands of Fiat at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Fiat? Wrong! If the Fiat is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Fiat then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Fiat? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Fiat and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Fiat wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Fiat then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Fiat site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Fiat, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Fiat, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
{{Infobox_Company| company_name = Fiat S.p.A.| company_logo = || company_type =
Public company )| foundation = 1899, [Italy Chairman
[John Elkann Vice Chairman
Sergio Marchionne C.E.O.], Commercial vehicles :Trucks, Buses, Agricultural and Engineering vehicle, Components and Production Systems, Services,
La Stampa51,832 million (2006)| net_income = [euro1,331 million (2005)| subsid = Automobiles
FerrariMaseratiFiat Group Automobiles S.p.A.Agricoltural and Construction Equipment
Commercial Vehicles
Components and Production system
- Fiat Powertrain Technologies S.p.A.
- Magneti Marelli
- Teksid S.p.A.
- Comau S.p.A.
Other Business
- Itedi S.p.A.
] automaker, manufacturer, financial and industry group based in Turin, Northern Italy. Founded in 1899 by a group of investors including Giovanni Agnelli, the company name FIAT is an acronym for Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin), and it also means "let there be" in Latin language. Fiat was also an aircraft manufacturer at one time.
Fiat branded cars are constructed all around the world; in Italy, Poland, Brazil (best seller) and Argentina. Joint Venture productions in France, Turkey, Egypt (with the state owned Nasr (car company) car company), South Africa, India and China.
Agnelli's grandson Gianni Agnelli was Fiat chairman from 1966 until his death on January 24, 2003. However, from 1996, he only served as an "honorary" chairman, while the chairman was Cesare Romiti. After their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took over as chairman from 2002 to 2004. After Umberto Agnelli's death on May 28, 2004, Luca Cordero di Montezemolo was named chairman, but Agnelli heir John Elkann became vice chairman at age 28 and other family members are on the board. At this point, CEO Giuseppe Morchio immediately offered his resignation. Sergio Marchionne was named to replace him on June 1, 2004.
Activities
The group's activities were initially focused on the industrial production of cars, industrial and agricultural vehicles. Over time it has diversified into many other fields, and the group now has activities in a wide range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant worldwide operations, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of whom are outside Italy.
Automobiles
List of Fiat models since 1899
Fiat Group is the largest automobile manufacturer in Italy, with a range of cars including the Fiat Fiat Panda, Fiat Punto, Fiat Stilo, Fiat Idea, Fiat Croma, Fiat Ulysse and Fiat Doblò. Car companies are run by Fiat Group Automobiles S.p.A, Ferrari and Maserati. Today automobile group runs well known firms like Lancia, Alfa Romeo, Abarth, Fiat Automobiles S.p.A, IVECO, and Maserati. Ferrari is owned by the Fiat Group, but is run autonomously. Light automobile sales accounted for 46.8% of total revenues during fiscal 2004 (3.2% of which is from Ferrari).#endnotes
The European Car of the Year award, Europe's premier automotive trophy for the past 40 years, has been awarded eleven times to the Fiat Group, more than any other manufacturer.
Agricultural and construction equipment
Fiat Group owns CNH Global (which includes Case Construction, Case IH, Flexi-Coil, Kobelco, New Holland, New Holland Construction, and Steyr); and Fiat-Hitachi, Ltd. Construction. CNH is the second largest agricultural equipment manufacturer in the world after Deere & Company It is also the third largest producer of construction equipment after Caterpillar Inc. and Komatsu. CNH accounts for 20.9% of revenues.#endnotes CNH is the most prized company inside Fiat because it has driven growth and is very profitable. It also shows great promise for growth in third-world markets.#endnotes
Commercial vehicles
Commercial vehicles (Iveco and Seddon Atkinson), buses (Iveco and Irisbus) and firefighting vehicles (Camiva, Iveco and Magirus). For information on their military vehicles, see Ariete.
On 17 April 2007 "Fiat Veicoli Commerciali" was rebranded as "Fiat Professional"#endnotes.
Some of Fiat's Light Commercial Vehicle products include; Fiat Ducato, Fiat Scudo and Fiat Doblò Cargo. See Fiat Professional for more details on Fiat's Light Commercial Vehicle Products.
Motorcycles and aeronautics
In 1959, Piaggio came under the control of the Agnelli family. Resultantly, in 1964 the aeronautical and motorcycle divisions split to become independent companies; the aeronautical division was named IAM Rinaldo Piaggio. Today the airplane company Piaggio Aero is controlled by the family of Piero Ferrari, which also still hold 10% of the carmaker Ferrari.
Vespa thrived until 1992, when Giovanni Alberto Agnelli became CEO - but Agnelli was already suffering from cancer, and died in 1997. In 1999, Morgan Grenfell acquired Piaggio
Fiat itself was an important aircraft manufacturer, focused mainly on military aviation. After the World War I, Fiat consolidated several Italian small aircraft manufacturers, like Fabbrica Aeroplani Ing. O. Pomilio and Gio. Ansaldo & C.. Most famous were Fiat biplane fighter aircraft of the 1930s, Fiat CR.32 and Fiat CR.42. Other notable designs were fighters Fiat CR.20, Fiat G.50, Fiat G.55 and a bomber, the Fiat BR.20. In 1950s, the company designed the Aeritalia G.91 light ground attack plane. Then, in 1969 an aerospace division of Fiat merged with Aerfer to create Aeritalia.
Components
The major Italian component maker Magneti Marelli is owned by Fiat, and in turn owns the other brands Carello, Automotive Lighting, Siem, Cofap, Jaeger, Solex, Veglia Borletti, Vitaloni, and Weber carburetor; other accessory brands include Riv-Skf and Brazilian Cofap.
Metallurgical products
Fiat owns a metal company, Teksid.
Production systems
Production systems are made mainly through Comau (now Comau Systems), which bought the American Pico, Renault Automation and Sciaky and produces industrial automation systems. In the 1970s and 1980s, the company became a pioneer in the use of industrial robotics for the assembly of motor vehicles. Fiat assembly plants are among the most automated and advanced in the world.
Services
An important insurance company, Toro Assicurazioni, allows Fiat to control a relevant part of this market (also with minor companies like Lloyd Italico and Augusta Assicurazioni) and to interact with some associated banks. Toro Assicurazioni was acquired by the giant insurance company Assicurazioni Generali and now is not related to the Fiat Group anymore.
Construction
Ingest Facility and Fiat Engineering work in various fields of construction, while IPI is a mediation company that also deals with the management of real estate properties.
Information technology
Fiat Group is present in IT fields and in communications with ICT - Information & Communication Technology, Espin, Global Value, TeleClient, and Atlanet.
Leisure
The group owns the Sestriere skiing facilities (being this village on Alps a creation of Agnelli family). The Sestriere skiing facilities has been sold by the group in 2006.
Publishing and communication
Fiat group also owns important editorial brands, like La Stampa (created in 1926 for the famous newspaper), Itedi, and Italiana Edizioni. Some national and local newspapers are owned or otherwise controlled by the different companies. A specialised advertising space reseller is Publikompass, supported by the Consorzio Fiat Media Center.
Other activities
Fiat Gesco, KeyG Consulting, Sadi Customs Services, Easy Drive, RM Risk Management and Servizio Titoli are minor companies that work for public services, delivering services in economics and financial fields. Other activities include industrial securitisation (Consorzio Sirio), treasury (Fiat Geva), Fiat Information & Communication Services.
Fiat supports the Fondazione Giovanni Agnelli, an important foundation for social and economic research. Palazzo Grassi, a famous ancient building in Venice, now a museum and formerly supported by Fiat, was eventually sold to the french businessman François Pinault in January 2005.
Fiat has recently begun sponsoring the Jamaican bobsledding team and promoting this sponsorship through commercials. Many like Jamaican athletes because they see them as underdogs and as people who enjoy life. While Volvo sponsors golf, Mercedes tennis, and Hyundai soccer, Fiat is trying to look unique and more light-hearted. Further, the team is relatively cheap to sponsor.#endnotes
The group is present in many countries, not only in the West. Notably, it was one of the first companies to build factories in Soviet-controlled countries, with the best known examples in Vladivostok, Kyiv and Tolyatti. The Russian government later continued the joint venture under the name AutoVAZ (known as Lada outside the former USSR). The venture was most notable for the Lada Riva. Fiat also has a subsidiary in Poland at Tychy, (formerly called FSM) where Fiat's small cars (the Fiat 126, Fiat Cinquecento and now Fiat Seicento) are made. Fiat also has factories in Argentina, Brazil, and Italy. In addition, its cars are produced through licensing and joint-venture agreements in China, Egypt, France, India, South Africa, Turkey, and Vietnam.#endnotes Local variants of Fiats are produced at these factories as well as a world car, the Fiat Palio. As of 2005, the company holds the first position in the Brazilian automobile market with a market share close to 25%.
Fiat has articulated that it wishes to focus on expanding into third-world markets because, in the words of former chairman Paolo Fresco, "those are the only markets where you can expect growth."#endnotes And it is true that Fiat's specialization in smaller cars puts it at an advantage in those markets, but cars sold in third-world countries tend to be much simpler than those sold elsewhere (e.g., most lack air conditioning), and thus require much less money to develop.
History
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. In 1903, Fiat produced its first truck.#endnotes In 1908, the first Fiat was exported to the US.#endnotes That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became somewhat popular in Europe.#endnotes 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 (city), New York, 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 Ford Model T in 1908.#endnotes However, upon the entry of the US into World War I in 1917, the factory was shut down as US regulations became too burdensome. At the same time, Fiat had to devote all of its factories to supplying Allies of World War I with aircraft, engines, machine guns, trucks, and ambulances. After the war, Fiat introduced its first tractor.#endnotes By the early 1920s, Fiat had a market share in Italy of 80%.#endnotes In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company, retiring to private life, and letting the workers try to run the company. Shortly afterward, 3,000 of them walked to his office and asked him to return to the helm — a request to which he reluctantly agreed. 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.Georgano, G. N. Cars: Early and Vintage, 1886-1930. (London: Grange-Universal, 1985) Fiat made military machinery and vehicles during World War II for the Italian Army and Regia Aeronautica and later for the Germans. Fiat made obsolete fighter aircraft like the biplane Fiat CR.42, which was one of the most common Italy aircraft, along with Savoia-Marchettis, as well as light tanks (obsolete compared to their Germany and Soviet Union counterparts) and armored vehicles. The best Fiat aircraft was the FIAT G.55 fighter, which arrived too late and in too limited numbers. In 1945 — the year Benito 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. #endnotes
Gianni Agnelli
Among Gianni's first steps after he gained 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 1960's. The company was reorganized on a product-line 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 able to devote its efforts to more far-reaching goals. In 1967, Fiat made its first acquisition when it purchased Autobianchi. Then, in 1969, it purchased controlling interests in Ferrari and Lancia. According to Newsweek in 1968, Fiat was "the most dynamic automaker in Europe... may come closest to challenging the worldwide supremacy of Detroit." In 1967, Fiat, with sales amounting to $1.7 billion, outstripped Volkswagen, its main European competitor; in 1968 Fiat produced some 1,750,000 vehicles while its sales volume climbed to $2.1 billion. At the time, Fiat was a conglomerate (company), owning Alitalia, toll highways, 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 that Valletta had made with Soviet officials in 1966, Agnelli constructed the AvtoVAZ plant in the new city of Togliattigrad on the Volga that went into 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 1979 energy 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. Thus, in 1984, Fiat and Lancia withdrew from the American market. In 1989, it did the same in the Australian market.
In 1986, Fiat acquired Alfa Romeo from the Italian government. In 1992, two top corporate officials in the Fiat Group were arrested for political corruption.#endnotes A year later, Fiat acquired Maserati. In 1995 Alfa Romeo exited the US market. Maserati re-entered the US market under Fiat in 2002. Since then, Maserati sales there have been increasing briskly.
Paolo Fresco
Paolo Fresco became chairman of Fiat in 1998 with the hope that the veteran of General Electric would bring more emphasis on shareholder value to Fiat. By the time he took power, Fiat's market share in Italy had fallen to 41%#endnotes from around 62% in 1984.#endnotes However, a Jack Welch-like management style would be much harsher than that used by the Italians (e.g., precarious versus lifetime employment). Instead, Fresco focused on offering more incentives for good performance, including compensation using stock options for top and middle management.
However,his efforts were frustrated by union objections. Unions insisted that pay raises be set by length of tenure, rather than performance. Another conflict was over his preference for informality (the founder, Giovanni Agnelli, used to be a cavalry officer). He often referred to other managers by their first name, although company tradition obliged one to refer to others using their titles (e.g., "Chairman Fresco"). The CEO of the company, Managing Director Paolo Cantarella, ran the day-to-day affairs of the company, while Fresco determined company strategy and especially acted as a negotiator for the company. In fact, many speculated the main reason he was chosen for the job was to sell Fiat Auto (although Fresco fervently denied it).#endnotes In 1999, Fiat formed CNH Global by merging New Holland NV and Case Corporation.
Recent events
Over time, most automotive companies around the world have become holding company of foreign as well as domestic competitors. For example, the U.S. company General Motors Corporation owned a controlling interest in Sweden's Saab Automobile and, until recently, in Japan's Isuzu. Fresco signed a joint-venture agreement in 2000 under which GM acquired a stake in Fiat. This made it appear as if Fiat was next, although GM has made joint ventures with other companies (such as Toyota) without acquiring them. Nevertheless, Fiat did not see the GM partnership as a threat, rather as an opportunity to off-load its automotive business. The agreement with GM included a put option, which held that Fiat would have the right to sell GM its auto division after four years at fair market value. If GM balked, it would be forced to pay a penalty of $2 billion. When Fiat tried to sell GM the company, GM chose the penalty. On May 13 2005 GM and Fiat officially dissolved their agreement, and Fiat is now courting Ford.#endnotes The current CEO views alliances such as these as the deciding factor of the future success of Fiat.
As part of the recent divestitures, in 2003 Fiat shed its insurance sector, which it was operating through Toro Assicurazioni to the DeAgostini Group. In the same year, Fiat sold its aviation business, FiatAvio to Avio Holding. In February 2004, the company sold its interest in Fiat Engineering, as well as its stake in Edison.
Fiat faces a multitude of threats, including rising steel prices (up 68% between January and October 2004),#endnotes a strong Euro, and increased competition from Japanese and Korean car manufacturers in Europe. Although the light-vehicle market share of Japanese and Korean automakers in Europe is less than in the US (12.5% and 3.9%, respectively versus 30% and 3.9% in the US), it has been increasing steadily at about a half a percent a year.#endnotesFiat has drawn criticism within New Zealand for an advert they ran in Italy, which a New Zealand Ministry of Foreign Affairs and Trade spokesman described as "culturally insensitive and inappropriate". The advert showed women performing the haka beside the new Fiat car and crowd noise is in the background to simulate the atmosphere in an All Blacks Rugby union match. As the haka is finished a woman drives away in the Fiat car and a boy in the back of the car pokes out his tongue, which is the action used to finish the haka.
Sergio Marchionne
Sergio Marchionne has begun to impress investors since taking over as CEO in June, 2004. Losses have fallen steadily since 2002, and Q4 of FY2005 saw its first profit in 17 quarters, and had a profit of 196M Euros for the first 9 months of FY2006.#endnotes Mr. Marchionne has succeeded more than Fresco in taking an axe to Fiat's bloated managerial bureaucracy and changing its tone to a focus on markets and profits. (Marchionne was raised in Canada by Italian parents.) While the charismatic chairman, the well-connected Luca di Montezemolo, dealt with politicians and unions, Marchionne rebuilt the car business. The success of the Grande Punto model has in large part been responsible for the turnaround in Fiat's fortunes.Fiat has formed a joint venture with India's TATA motors and has started its second innings with a force .
Eastern European enterprises
Fiat was a key player in developing motor industries for a number of Eastern European countries from the 1950s onwards.
Zastava (Yugoslavia)
Its first enterprise came in 1955, when it agreed a deal with Yugoslavia carmaker Zastava to assemble Fiats for Eastern Europe. The first cars to be produced by Zastava were its versions of the Fiat 1300 and Fiat 1400. By 1970, Zastava was assembling versions of the newer Fiat 124 and Fiat 125 models, although these cars were never actually built in Yugoslavia - in fact they were built in Poland, another communist Eastern European country. The Zastava 750, launched in 1962, was Zastava's version of the iconic Fiat 600 mini-car. It outlived the car on which it was based, with production not finishing until 1981.
Zastavas were almost unheard of outside Eastern Europe before the 1980s, although it did export cars to United States of America under the Yugo brand as long ago as 1973.
The most famous product launched by Zastava is the Zastava 101, a front-wheel drive saloon that was the Yugoslav-built version of the Fiat 128. Despite numerous bad press about build quality and reliability, it sold well in Yugoslavia thanks largerly to its low asking price, cheap maintenance costs and simple mechanical design. It remains on sale in the former Yugoslavia to this very day; it is now in its 36th year of production.
With the demise of the aged Zastava 750 in 1981, the mini-car gap in the Zastava range was filled by the Zastava Koral, which was best known in United Kingdom and America as the Yugo Tempo. It was based on the 1971 Fiat 127, which was due to be replaced by the Fiat Uno in 1983. It was among the cheapest cars on sale in both countries, and in Britain at least it gained a respectable market share for such a relatively unknown and spartan car. But hostility towards Yugoslavia in the wake of the 1992 civil unrest saw a swift ceasure of imports to both Britain and America.
The Zastava factory in Belgrade was later bombed, but was rebuilt once the war was over, and production continued at another factory in Kragujevac.
In 1987, it appeared that Zastava had finally succeeded in developing a modern and efficient new car. The Zastava Florida - known in other markets as the Yugo Sana - was styled by Giorgetto Giugiaro at the ItalDesign studio, featured a range of refined Peugeot engines, and was mechanically similar to the forthcoming and highly acclaimed Fiat Tipo. It was sold in Britain from 1988 to 1992, but was withdrawn from sale for a number of reasons - particularly the domestic upheavels in Yugoslavia and the fall in popularity of the whole Yugo range in Britain. Sales continued in its homeland, with an update at the end of the 1990s.
Zastava did not launch another all-new car for another 16 years. When that new car finally came, it was another Fiat design - this time the Fiat Punto. The Zastava 10, as it is known, was launched in 2003 and sets new standards for Yugoslav cars. Items such as twin airbags, electric windows and air-conditioning had previously been unthinkable on cars built in the former Yugoslavia. It is also competitively priced compared to other similar-sized cars, even the Punto on which it is based.
Four years after its launch, the Zastava 10 has not yet been sold outside of the former Yugoslavia.
Polski-Fiat/FSO (Poland)
In 1965, the Poland communist government signed a deal with Fiat to produce selected Fiat models in Poland at the Fabryka Samochodów Osobowych in Warsaw that had been built in 1951. Production of the new car - the Polski Fiat 125p - began in 1967. It was visually identical to the Italy Fiat 125, but it made use of older Fiat mechanicals which dated back to 1960. The car sold very well in its homeland and was soon exported to Western Europe. After 1979, Fiat withdrew control of the FSO car factory and from then on the FSO badge was revived. A year earlier, it had appeared on a new five-door hatchback, the FSO Polonez, that made use of the Fiat 125 running gear.
The Polski Fiat design survived until 1991, by which time almost 1,500,000 had been made in less than 25 years. It was a cheap competitor to similar Eastern European budget cars, and by the time of its demise, many Eastern European carmakers were adopting modern Western style designs in place of the archaic three-box saloons that had barely moved out of the 1960s.
FSO was taken over by Daewoo of South Korea in 1995, by which time the FSO Polonez had been replaced by the FSO Caro, which was little more than a facelift of the 1978 design with underpinnings dating back to 1960. This car was sold in Western Europe until the end of the 1990s, and production finally finished in 2002.
FSO had become independent again in late 2000, after Daewoo went bankrupt and were saved by the General Motors combine. Despite this, FSO continued to build versions of the Daewoo Matiz and Daewoo Lanos. These cars remain in production to this day, although it is planned that the factory may soon be producing a version of the upcoming Chevrolet Aveo.
Lada (Soviet Union/Russia)
In 1966, Fiat built a new car factory on the banks of the Volga river. A new area called Togliatti (named after an Italian communist) was developed around the factory, which started producing a "people's car" called the Lada. It was based on the new Fiat 124, but aimed at the budget end of the market to target buyers of cars like the Volkswagen Beetle and Citroen 2CV - except the Lada was a more practical and spacious offering in four-door saloon and five-door estate guise. Fiat installed British-bult machine tools supplied by Herbert-BSA of Birmingham for the manufacture of many Lada parts. The Fiat 124 design was mechanically upgraded to survive treacherous Russian driving conditions and freezing Siberian winters. Imports to Western Europe began in 1974, and after a few years of slow sales, the cars began to sell well thanks largely to their low asking price.
This car was upgraded to become the Lada Riva in 1980, a year after the launch of a four-wheel drive - the Lada Niva - which was specially designed for the Russian army. It failed to match the on-road handling of similar small off-roaders like the Suzuki SJ, but off the road there were few vehicles that could match it.
In 1984, Lada made its first attempt at a modern front-wheel drive hatchback. The Lada Samara was an all-new design that was a superb engineering achievements considering the years of technical isolation in Eastern Europe. But it was let down by a dreadful plasticky interior and dismal finish. Even though it was a rugged car capable of dealing with the worst road conditions, many Western European buyers stuck with the old Riva. Western European imports of the Samara began in 1987 - the year in which the Lada range totalled more than 21,000 sales in Britain. But the low asking price of the Lada range was not enough, and by 1996 the Lada range sold just over 6,000 cars in Britain. The following year, this - and ever-tougher emissions requirements - forced Lada out of Britain and many other export markets.
In 1996, Lada did make another attempt at an all-new modern front-wheel drive car. The Lada 110 was a more modern looking car than the rest of the Lada range, but its modern looks were not carried through to the engineering design or build quality.
Production of the Samara ceased in 2004, but the ancient Riva and Niva remain in production, alongside the newer 110 as well as another new car, the Lada Kalina. Launched in 2004, this small car is available as a hatchback, saloon and estates, and sets new standards for Russian small cars in terms of specification and design. AvtoVaz, the firm who makes Ladas, hopes to have the Kalina on sale in Western Europe in the near future.
Fiat Auto's position in Europe today
Fiat Auto's sales in Europe grew by 20% in 2006, with sales totalling 1.2 million units. So far this year Fiat Auto's European sales are up by almost 8%, with sales of more than 1 million units over the first 9 monthes of the year. Market share was 7.5% in 2006, with Fiat's market share this year expected to be around the 8.3% mark. The Fiat brand is the fastest growing element of the group, with sales up 10% in Europe so far this year. Fiat makes up more than 80% of Fiat Auto's sales in Europe, with sales to date of almost 800,000 units. The next largest part of the group is Alfa Romeo, sales so far in Europe this year are 115 thousand (Up 2%), Fiat Auto is completed by Lancia, which has accumulated 100 thousand sales to September (Up 5%). Fiat Auto is the 6th biggest selling car group in Europe, while Fiat is the 5th largest individual brand. Italy is by far Fiat's largest market in Europe-more than two thirds of all Fiat Auto products sold in Europe are sold here. Fiat Auto expects to sell 1.35 million cars in Europe this year, of which 800 thousand or so will be sold in Italy. France is the next largest market with 150 thousand sales expected. The Uk, Germany and Spain are other large markets for Fiat Auto.
Fiat's future
Fiat Auto is currently enjoying a renaissance. Sales are soaring, its image is stronger than ever, and its efforts to improve reliability seem to be finally paying off. It's hard to believe that Fiat almost went into receivership in 2001. Even harder to believe is the fact that Fiat Auto made a $600 million loss in 2004. Fiat Auto's success has a huge effect on the success of the company as a whole. To keep Fiat Auto going strong, huge investment must be spent on constantly developing new models. The Fiat brand plans to launch no fewer than 10 all new cars and 3 all new vans between now and 2010. On top of this Fiat plans to expand hugely in China, India, North Africa and Russia. A return to the USA is vital if Fiat wants to challenge to become the worlds largest car maker. The Fiat brand may return to the US in 2012, though this is unconfirmed. It seems certain that Fiat wil re-enter the US market before 2020 however. Fiat Auto's most ambitious plans are for Lancia and Alfa Romeo. By 2010 Fiat wants both manufacturers to produce more than 300 thousand cars a year. Alfa is to return to the US market in 2010, and will launch 6 all new modes etween now and 2010. Lancia will return to Scandanavia, the British isles and Japan during phase one of its expansion. This will take place in 2008. By 2010 Lancia will also have expanded into Australia, New Zealand, China and India. To accompany its expansion into new markets Lancia is to launch 5 all new models between now and 2010. This new model range will see the return of the Delta. Fiat Auto is aiming for 4 million sales worldwide by 2010, this year Fiat Auto expects to sell 2.75 million vehicles.
See also
External links
- The Fiat Group
- The Fiat car company
- The official Fiat Commercial Vehicles website
- Open directory of web sites about Fiat
- Yahoo! Fiat SpA Company Profile
- The FIAT Forum Comprehensive forum covering all FIAT models.
Endnotes
- Fiat Group, 2001 Annual Report, p.42
- "Company Profile: Fiat S.p.A.", Datamonitor, May, 2005, p.18
- Ibid. p.18
- Ibid. pp.21 & 23.
- Mark Graham, "So Cool it Hurts", CAR Magazine, October 2005, p.26
- Fiat Group, "Automobiles: Fiat Auto" (accessed December 29 2005).
- John Tagliabue, "Will GE's Fresco Bring Good Things to Fiat?" The New York Times September 12 1999.
- Fiat Group, "History", (accessed December 29 2005)
- Lauren Arthur "Our North Road Neighbors: When ME was home to Fiat", The Circle, p.4, December 10 1987.
- Fiat, "History."
- "Ford, Henry", Sobel, Robert, World Book Online Reference Center, World Book, Inc.
- Fiat, "History."
- "Fiat SpA", Encyclopædia Britannica, Encyclopædia Britannica Online. (accessed November 20 2005).
- Obituary, The New York Times, 25 January 2003, A p1+
- John R. Weinthal, "Industrial Review: AUTOMOBILES", 1992 Year in Review, Encyclopaedia Britannica, Inc.
- Automotive News 1985 Market Data Book, Crain Communications, Inc.
- Luca Ciferri, "Fresco Brings Taste of New World to Fiat", Automotive News Europe (August, 1998) vol.72, p.6
- "Saving Fiat", The Economist, December 3 2005, p.64, vol.377
- "Company Profile", pp.23-24
- "Estimated Europe"
- Fiat S.p.A., "HIGHLIGHTS OF RESULTS", 2006 Q3 Quarterly Report, p.11
- "Fiat Auto Press article" (accessed May 1 2007).
{{Infobox_Company| company_name = Fiat S.p.A.| company_logo = || company_type = Public company )| foundation = 1899, [Italy Chairman
[John Elkann Vice Chairman
Sergio Marchionne C.E.O.], Commercial vehicles :Trucks, Buses, Agricultural and Engineering vehicle, Components and Production Systems, Services, La Stampa51,832 million (2006)| net_income = [euro1,331 million (2005)| subsid = Automobiles
Ferrari
Maserati
Fiat Group Automobiles S.p.A.Agricoltural and Construction EquipmentCommercial VehiclesComponents and Production system- Fiat Powertrain Technologies S.p.A.
- Magneti Marelli
- Teksid S.p.A.
- Comau S.p.A.
Other Business- Itedi S.p.A.
] automaker, manufacturer, financial and industry group based in Turin, Northern Italy. Founded in 1899 by a group of investors including Giovanni Agnelli, the company name FIAT is an acronym for Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin), and it also means "let there be" in Latin language. Fiat was also an aircraft manufacturer at one time.
Fiat branded cars are constructed all around the world; in Italy, Poland, Brazil (best seller) and Argentina. Joint Venture productions in France, Turkey, Egypt (with the state owned Nasr (car company) car company), South Africa, India and China.
Agnelli's grandson Gianni Agnelli was Fiat chairman from 1966 until his death on January 24, 2003. However, from 1996, he only served as an "honorary" chairman, while the chairman was Cesare Romiti. After their removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took over as chairman from 2002 to 2004. After Umberto Agnelli's death on May 28, 2004, Luca Cordero di Montezemolo was named chairman, but Agnelli heir John Elkann became vice chairman at age 28 and other family members are on the board. At this point, CEO Giuseppe Morchio immediately offered his resignation. Sergio Marchionne was named to replace him on June 1, 2004.
Activities
The group's activities were initially focused on the industrial production of cars, industrial and agricultural vehicles. Over time it has diversified into many other fields, and the group now has activities in a wide range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant worldwide operations, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of whom are outside Italy.
Automobiles
List of Fiat models since 1899
Fiat Group is the largest automobile manufacturer in Italy, with a range of cars including the Fiat Fiat Panda, Fiat Punto, Fiat Stilo, Fiat Idea, Fiat Croma, Fiat Ulysse and Fiat Doblò. Car companies are run by Fiat Group Automobiles S.p.A, Ferrari and Maserati. Today automobile group runs well known firms like Lancia, Alfa Romeo, Abarth, Fiat Automobiles S.p.A, IVECO, and Maserati. Ferrari is owned by the Fiat Group, but is run autonomously. Light automobile sales accounted for 46.8% of total revenues during fiscal 2004 (3.2% of which is from Ferrari).#endnotes
The European Car of the Year award, Europe's premier automotive trophy for the past 40 years, has been awarded eleven times to the Fiat Group, more than any other manufacturer.
Agricultural and construction equipment
Fiat Group owns CNH Global (which includes Case Construction, Case IH, Flexi-Coil, Kobelco, New Holland, New Holland Construction, and Steyr); and Fiat-Hitachi, Ltd. Construction. CNH is the second largest agricultural equipment manufacturer in the world after Deere & Company It is also the third largest producer of construction equipment after Caterpillar Inc. and Komatsu. CNH accounts for 20.9% of revenues.#endnotes CNH is the most prized company inside Fiat because it has driven growth and is very profitable. It also shows great promise for growth in third-world markets.#endnotes
Commercial vehicles
Commercial vehicles (Iveco and Seddon Atkinson), buses (Iveco and Irisbus) and firefighting vehicles (Camiva, Iveco and Magirus). For information on their military vehicles, see Ariete.
On 17 April 2007 "Fiat Veicoli Commerciali" was rebranded as "Fiat Professional"#endnotes.
Some of Fiat's Light Commercial Vehicle products include; Fiat Ducato, Fiat Scudo and Fiat Doblò Cargo. See Fiat Professional for more details on Fiat's Light Commercial Vehicle Products.
Motorcycles and aeronautics
In 1959, Piaggio came under the control of the Agnelli family. Resultantly, in 1964 the aeronautical and motorcycle divisions split to become independent companies; the aeronautical division was named IAM Rinaldo Piaggio. Today the airplane company Piaggio Aero is controlled by the family of Piero Ferrari, which also still hold 10% of the carmaker Ferrari.
Vespa thrived until 1992, when Giovanni Alberto Agnelli became CEO - but Agnelli was already suffering from cancer, and died in 1997. In 1999, Morgan Grenfell acquired Piaggio
Fiat itself was an important aircraft manufacturer, focused mainly on military aviation. After the World War I, Fiat consolidated several Italian small aircraft manufacturers, like Fabbrica Aeroplani Ing. O. Pomilio and Gio. Ansaldo & C.. Most famous were Fiat biplane fighter aircraft of the 1930s, Fiat CR.32 and Fiat CR.42. Other notable designs were fighters Fiat CR.20, Fiat G.50, Fiat G.55 and a bomber, the Fiat BR.20. In 1950s, the company designed the Aeritalia G.91 light ground attack plane. Then, in 1969 an aerospace division of Fiat merged with Aerfer to create Aeritalia.
Components
The major Italian component maker Magneti Marelli is owned by Fiat, and in turn owns the other brands Carello, Automotive Lighting, Siem, Cofap, Jaeger, Solex, Veglia Borletti, Vitaloni, and Weber carburetor; other accessory brands include Riv-Skf and Brazilian Cofap.
Metallurgical products
Fiat owns a metal company, Teksid.
Production systems
Production systems are made mainly through Comau (now Comau Systems), which bought the American Pico, Renault Automation and Sciaky and produces industrial automation systems. In the 1970s and 1980s, the company became a pioneer in the use of industrial robotics for the assembly of motor vehicles. Fiat assembly plants are among the most automated and advanced in the world.
Services
An important insurance company, Toro Assicurazioni, allows Fiat to control a relevant part of this market (also with minor companies like Lloyd Italico and Augusta Assicurazioni) and to interact with some associated banks. Toro Assicurazioni was acquired by the giant insurance company Assicurazioni Generali and now is not related to the Fiat Group anymore.
Construction
Ingest Facility and Fiat Engineering work in various fields of construction, while IPI is a mediation company that also deals with the management of real estate properties.
Information technology
Fiat Group is present in IT fields and in communications with ICT - Information & Communication Technology, Espin, Global Value, TeleClient, and Atlanet.
Leisure
The group owns the Sestriere skiing facilities (being this village on Alps a creation of Agnelli family). The Sestriere skiing facilities has been sold by the group in 2006.
Publishing and communication
Fiat group also owns important editorial brands, like La Stampa (created in 1926 for the famous newspaper), Itedi, and Italiana Edizioni. Some national and local newspapers are owned or otherwise controlled by the different companies. A specialised advertising space reseller is Publikompass, supported by the Consorzio Fiat Media Center.
Other activities
Fiat Gesco, KeyG Consulting, Sadi Customs Services, Easy Drive, RM Risk Management and Servizio Titoli are minor companies that work for public services, delivering services in economics and financial fields. Other activities include industrial securitisation (Consorzio Sirio), treasury (Fiat Geva), Fiat Information & Communication Services.
Fiat supports the Fondazione Giovanni Agnelli, an important foundation for social and economic research. Palazzo Grassi, a famous ancient building in Venice, now a museum and formerly supported by Fiat, was eventually sold to the french businessman François Pinault in January 2005.
Fiat has recently begun sponsoring the Jamaican bobsledding team and promoting this sponsorship through commercials. Many like Jamaican athletes because they see them as underdogs and as people who enjoy life. While Volvo sponsors golf, Mercedes tennis, and Hyundai soccer, Fiat is trying to look unique and more light-hearted. Further, the team is relatively cheap to sponsor.#endnotes
The group is present in many countries, not only in the West. Notably, it was one of the first companies to build factories in Soviet-controlled countries, with the best known examples in Vladivostok, Kyiv and Tolyatti. The Russian government later continued the joint venture under the name AutoVAZ (known as Lada outside the former USSR). The venture was most notable for the Lada Riva. Fiat also has a subsidiary in Poland at Tychy, (formerly called FSM) where Fiat's small cars (the Fiat 126, Fiat Cinquecento and now Fiat Seicento) are made. Fiat also has factories in Argentina, Brazil, and Italy. In addition, its cars are produced through licensing and joint-venture agreements in China, Egypt, France, India, South Africa, Turkey, and Vietnam.#endnotes Local variants of Fiats are produced at these factories as well as a world car, the Fiat Palio. As of 2005, the company holds the first position in the Brazilian automobile market with a market share close to 25%.
Fiat has articulated that it wishes to focus on expanding into third-world markets because, in the words of former chairman Paolo Fresco, "those are the only markets where you can expect growth."#endnotes And it is true that Fiat's specialization in smaller cars puts it at an advantage in those markets, but cars sold in third-world countries tend to be much simpler than those sold elsewhere (e.g., most lack air conditioning), and thus require much less money to develop.
History
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. In 1903, Fiat produced its first truck.#endnotes In 1908, the first Fiat was exported to the US.#endnotes That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became somewhat popular in Europe.#endnotes 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 (city), New York, 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 Ford Model T in 1908.#endnotes However, upon the entry of the US into World War I in 1917, the factory was shut down as US regulations became too burdensome. At the same time, Fiat had to devote all of its factories to supplying Allies of World War I with aircraft, engines, machine guns, trucks, and ambulances. After the war, Fiat introduced its first tractor.#endnotes By the early 1920s, Fiat had a market share in Italy of 80%.#endnotes In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company, retiring to private life, and letting the workers try to run the company. Shortly afterward, 3,000 of them walked to his office and asked him to return to the helm — a request to which he reluctantly agreed. 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.Georgano, G. N. Cars: Early and Vintage, 1886-1930. (London: Grange-Universal, 1985) Fiat made military machinery and vehicles during World War II for the Italian Army and Regia Aeronautica and later for the Germans. Fiat made obsolete fighter aircraft like the biplane Fiat CR.42, which was one of the most common Italy aircraft, along with Savoia-Marchettis, as well as light tanks (obsolete compared to their Germany and Soviet Union counterparts) and armored vehicles. The best Fiat aircraft was the FIAT G.55 fighter, which arrived too late and in too limited numbers. In 1945 — the year Benito 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. #endnotes
Gianni Agnelli
Among Gianni's first steps after he gained 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 1960's. The company was reorganized on a product-line 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 able to devote its efforts to more far-reaching goals. In 1967, Fiat made its first acquisition when it purchased Autobianchi. Then, in 1969, it purchased controlling interests in Ferrari and Lancia. According to Newsweek in 1968, Fiat was "the most dynamic automaker in Europe... may come closest to challenging the worldwide supremacy of Detroit." In 1967, Fiat, with sales amounting to $1.7 billion, outstripped Volkswagen, its main European competitor; in 1968 Fiat produced some 1,750,000 vehicles while its sales volume climbed to $2.1 billion. At the time, Fiat was a conglomerate (company), owning Alitalia, toll highways, 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 that Valletta had made with Soviet officials in 1966, Agnelli constructed the AvtoVAZ plant in the new city of Togliattigrad on the Volga that went into 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 1979 energy 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. Thus, in 1984, Fiat and Lancia withdrew from the American market. In 1989, it did the same in the Australian market.
In 1986, Fiat acquired Alfa Romeo from the Italian government. In 1992, two top corporate officials in the Fiat Group were arrested for political corruption.#endnotes A year later, Fiat acquired Maserati. In 1995 Alfa Romeo exited the US market. Maserati re-entered the US market under Fiat in 2002. Since then, Maserati sales there have been increasing briskly.
Paolo Fresco
Paolo Fresco became chairman of Fiat in 1998 with the hope that the veteran of General Electric would bring more emphasis on shareholder value to Fiat. By the time he took power, Fiat's market share in Italy had fallen to 41%#endnotes from around 62% in 1984.#endnotes However, a Jack Welch-like management style would be much harsher than that used by the Italians (e.g., precarious versus lifetime employment). Instead, Fresco focused on offering more incentives for good performance, including compensation using stock options for top and middle management.
However,his efforts were frustrated by union objections. Unions insisted that pay raises be set by length of tenure, rather than performance. Another conflict was over his preference for informality (the founder, Giovanni Agnelli, used to be a cavalry officer). He often referred to other managers by their first name, although company tradition obliged one to refer to others using their titles (e.g., "Chairman Fresco"). The CEO of the company, Managing Director Paolo Cantarella, ran the day-to-day affairs of the company, while Fresco determined company strategy and especially acted as a negotiator for the company. In fact, many speculated the main reason he was chosen for the job was to sell Fiat Auto (although Fresco fervently denied it).#endnotes In 1999, Fiat formed CNH Global by merging New Holland NV and Case Corporation.
Recent events
Over time, most automotive companies around the world have become holding company of foreign as well as domestic competitors. For example, the U.S. company General Motors Corporation owned a controlling interest in Sweden's Saab Automobile and, until recently, in Japan's Isuzu. Fresco signed a joint-venture agreement in 2000 under which GM acquired a stake in Fiat. This made it appear as if Fiat was next, although GM has made joint ventures with other companies (such as Toyota) without acquiring them. Nevertheless, Fiat did not see the GM partnership as a threat, rather as an opportunity to off-load its automotive business. The agreement with GM included a put option, which held that Fiat would have the right to sell GM its auto division after four years at fair market value. If GM balked, it would be forced to pay a penalty of $2 billion. When Fiat tried to sell GM the company, GM chose the penalty. On May 13 2005 GM and Fiat officially dissolved their agreement, and Fiat is now courting Ford.#endnotes The current CEO views alliances such as these as the deciding factor of the future success of Fiat.
As part of the recent divestitures, in 2003 Fiat shed its insurance sector, which it was operating through Toro Assicurazioni to the DeAgostini Group. In the same year, Fiat sold its aviation business, FiatAvio to Avio Holding. In February 2004, the company sold its interest in Fiat Engineering, as well as its stake in Edison.
Fiat faces a multitude of threats, including rising steel prices (up 68% between January and October 2004),#endnotes a strong Euro, and increased competition from Japanese and Korean car manufacturers in Europe. Although the light-vehicle market share of Japanese and Korean automakers in Europe is less than in the US (12.5% and 3.9%, respectively versus 30% and 3.9% in the US), it has been increasing steadily at about a half a percent a year.#endnotesFiat has drawn criticism within New Zealand for an advert they ran in Italy, which a New Zealand Ministry of Foreign Affairs and Trade spokesman described as "culturally insensitive and inappropriate". The advert showed women performing the haka beside the new Fiat car and crowd noise is in the background to simulate the atmosphere in an All Blacks Rugby union match. As the haka is finished a woman drives away in the Fiat car and a boy in the back of the car pokes out his tongue, which is the action used to finish the haka.
Sergio Marchionne
Sergio Marchionne has begun to impress investors since taking over as CEO in June, 2004. Losses have fallen steadily since 2002, and Q4 of FY2005 saw its first profit in 17 quarters, and had a profit of 196M Euros for the first 9 months of FY2006.#endnotes Mr. Marchionne has succeeded more than Fresco in taking an axe to Fiat's bloated managerial bureaucracy and changing its tone to a focus on markets and profits. (Marchionne was raised in Canada by Italian parents.) While the charismatic chairman, the well-connected Luca di Montezemolo, dealt with politicians and unions, Marchionne rebuilt the car business. The success of the Grande Punto model has in large part been responsible for the turnaround in Fiat's fortunes.Fiat has formed a joint venture with India's TATA motors and has started its second innings with a force .
Eastern European enterprises
Fiat was a key player in developing motor industries for a number of Eastern European countries from the 1950s onwards.
Zastava (Yugoslavia)
Its first enterprise came in 1955, when it agreed a deal with Yugoslavia carmaker Zastava to assemble Fiats for Eastern Europe. The first cars to be produced by Zastava were its versions of the Fiat 1300 and Fiat 1400. By 1970, Zastava was assembling versions of the newer Fiat 124 and Fiat 125 models, although these cars were never actually built in Yugoslavia - in fact they were built in Poland, another communist Eastern European country. The Zastava 750, launched in 1962, was Zastava's version of the iconic Fiat 600 mini-car. It outlived the car on which it was based, with production not finishing until 1981.
Zastavas were almost unheard of outside Eastern Europe before the 1980s, although it did export cars to United States of America under the Yugo brand as long ago as 1973.
The most famous product launched by Zastava is the Zastava 101, a front-wheel drive saloon that was the Yugoslav-built version of the Fiat 128. Despite numerous bad press about build quality and reliability, it sold well in Yugoslavia thanks largerly to its low asking price, cheap maintenance costs and simple mechanical design. It remains on sale in the former Yugoslavia to this very day; it is now in its 36th year of production.
With the demise of the aged Zastava 750 in 1981, the mini-car gap in the Zastava range was filled by the Zastava Koral, which was best known in United Kingdom and America as the Yugo Tempo. It was based on the 1971 Fiat 127, which was due to be replaced by the Fiat Uno in 1983. It was among the cheapest cars on sale in both countries, and in Britain at least it gained a respectable market share for such a relatively unknown and spartan car. But hostility towards Yugoslavia in the wake of the 1992 civil unrest saw a swift ceasure of imports to both Britain and America.
The Zastava factory in Belgrade was later bombed, but was rebuilt once the war was over, and production continued at another factory in Kragujevac.
In 1987, it appeared that Zastava had finally succeeded in developing a modern and efficient new car. The Zastava Florida - known in other markets as the Yugo Sana - was styled by Giorgetto Giugiaro at the ItalDesign studio, featured a range of refined Peugeot engines, and was mechanically similar to the forthcoming and highly acclaimed Fiat Tipo. It was sold in Britain from 1988 to 1992, but was withdrawn from sale for a number of reasons - particularly the domestic upheavels in Yugoslavia and the fall in popularity of the whole Yugo range in Britain. Sales continued in its homeland, with an update at the end of the 1990s.
Zastava did not launch another all-new car for another 16 years. When that new car finally came, it was another Fiat design - this time the Fiat Punto. The Zastava 10, as it is known, was launched in 2003 and sets new standards for Yugoslav cars. Items such as twin airbags, electric windows and air-conditioning had previously been unthinkable on cars built in the former Yugoslavia. It is also competitively priced compared to other similar-sized cars, even the Punto on which it is based.
Four years after its launch, the Zastava 10 has not yet been sold outside of the former Yugoslavia.
Polski-Fiat/FSO (Poland)
In 1965, the Poland communist government signed a deal with Fiat to produce selected Fiat models in Poland at the Fabryka Samochodów Osobowych in Warsaw that had been built in 1951. Production of the new car - the Polski Fiat 125p - began in 1967. It was visually identical to the Italy Fiat 125, but it made use of older Fiat mechanicals which dated back to 1960. The car sold very well in its homeland and was soon exported to Western Europe. After 1979, Fiat withdrew control of the FSO car factory and from then on the FSO badge was revived. A year earlier, it had appeared on a new five-door hatchback, the FSO Polonez, that made use of the Fiat 125 running gear.
The Polski Fiat design survived until 1991, by which time almost 1,500,000 had been made in less than 25 years. It was a cheap competitor to similar Eastern European budget cars, and by the time of its demise, many Eastern European carmakers were adopting modern Western style designs in place of the archaic three-box saloons that had barely moved out of the 1960s.
FSO was taken over by Daewoo of South Korea in 1995, by which time the FSO Polonez had been replaced by the FSO Caro, which was little more than a facelift of the 1978 design with underpinnings dating back to 1960. This car was sold in Western Europe until the end of the 1990s, and production finally finished in 2002.
FSO had become independent again in late 2000, after Daewoo went bankrupt and were saved by the General Motors combine. Despite this, FSO continued to build versions of the Daewoo Matiz and Daewoo Lanos. These cars remain in production to this day, although it is planned that the factory may soon be producing a version of the upcoming Chevrolet Aveo.
Lada (Soviet Union/Russia)
In 1966, Fiat built a new car factory on the banks of the Volga river. A new area called Togliatti (named after an Italian communist) was developed around the factory, which started producing a "people's car" called the Lada. It was based on the new Fiat 124, but aimed at the budget end of the market to target buyers of cars like the Volkswagen Beetle and Citroen 2CV - except the Lada was a more practical and spacious offering in four-door saloon and five-door estate guise. Fiat installed British-bult machine tools supplied by Herbert-BSA of Birmingham for the manufacture of many Lada parts. The Fiat 124 design was mechanically upgraded to survive treacherous Russian driving conditions and freezing Siberian winters. Imports to Western Europe began in 1974, and after a few years of slow sales, the cars began to sell well thanks largely to their low asking price.
This car was upgraded to become the Lada Riva in 1980, a year after the launch of a four-wheel drive - the Lada Niva - which was specially designed for the Russian army. It failed to match the on-road handling of similar small off-roaders like the Suzuki SJ, but off the road there were few vehicles that could match it.
In 1984, Lada made its first attempt at a modern front-wheel drive hatchback. The Lada Samara was an all-new design that was a superb engineering achievements considering the years of technical isolation in Eastern Europe. But it was let down by a dreadful plasticky interior and dismal finish. Even though it was a rugged car capable of dealing with the worst road conditions, many Western European buyers stuck with the old Riva. Western European imports of the Samara began in 1987 - the year in which the Lada range totalled more than 21,000 sales in Britain. But the low asking price of the Lada range was not enough, and by 1996 the Lada range sold just over 6,000 cars in Britain. The following year, this - and ever-tougher emissions requirements - forced Lada out of Britain and many other export markets.
In 1996, Lada did make another attempt at an all-new modern front-wheel drive car. The Lada 110 was a more modern looking car than the rest of the Lada range, but its modern looks were not carried through to the engineering design or build quality.
Production of the Samara ceased in 2004, but the ancient Riva and Niva remain in production, alongside the newer 110 as well as another new car, the Lada Kalina. Launched in 2004, this small car is available as a hatchback, saloon and estates, and sets new standards for Russian small cars in terms of specification and design. AvtoVaz, the firm who makes Ladas, hopes to have the Kalina on sale in Western Europe in the near future.
Fiat Auto's position in Europe today
Fiat Auto's sales in Europe grew by 20% in 2006, with sales totalling 1.2 million units. So far this year Fiat Auto's European sales are up by almost 8%, with sales of more than 1 million units over the first 9 monthes of the year. Market share was 7.5% in 2006, with Fiat's market share this year expected to be around the 8.3% mark. The Fiat brand is the fastest growing element of the group, with sales up 10% in Europe so far this year. Fiat makes up more than 80% of Fiat Auto's sales in Europe, with sales to date of almost 800,000 units. The next largest part of the group is Alfa Romeo, sales so far in Europe this year are 115 thousand (Up 2%), Fiat Auto is completed by Lancia, which has accumulated 100 thousand sales to September (Up 5%). Fiat Auto is the 6th biggest selling car group in Europe, while Fiat is the 5th largest individual brand. Italy is by far Fiat's largest market in Europe-more than two thirds of all Fiat Auto products sold in Europe are sold here. Fiat Auto expects to sell 1.35 million cars in Europe this year, of which 800 thousand or so will be sold in Italy. France is the next largest market with 150 thousand sales expected. The Uk, Germany and Spain are other large markets for Fiat Auto.
Fiat's future
Fiat Auto is currently enjoying a renaissance. Sales are soaring, its image is stronger than ever, and its efforts to improve reliability seem to be finally paying off. It's hard to believe that Fiat almost went into receivership in 2001. Even harder to believe is the fact that Fiat Auto made a $600 million loss in 2004. Fiat Auto's success has a huge effect on the success of the company as a whole. To keep Fiat Auto going strong, huge investment must be spent on constantly developing new models. The Fiat brand plans to launch no fewer than 10 all new cars and 3 all new vans between now and 2010. On top of this Fiat plans to expand hugely in China, India, North Africa and Russia. A return to the USA is vital if Fiat wants to challenge to become the worlds largest car maker. The Fiat brand may return to the US in 2012, though this is unconfirmed. It seems certain that Fiat wil re-enter the US market before 2020 however. Fiat Auto's most ambitious plans are for Lancia and Alfa Romeo. By 2010 Fiat wants both manufacturers to produce more than 300 thousand cars a year. Alfa is to return to the US market in 2010, and will launch 6 all new modes etween now and 2010. Lancia will return to Scandanavia, the British isles and Japan during phase one of its expansion. This will take place in 2008. By 2010 Lancia will also have expanded into Australia, New Zealand, China and India. To accompany its expansion into new markets Lancia is to launch 5 all new models between now and 2010. This new model range will see the return of the Delta. Fiat Auto is aiming for 4 million sales worldwide by 2010, this year Fiat Auto expects to sell 2.75 million vehicles.
See also
External links
- The Fiat Group
- The Fiat car company
- The official Fiat Commercial Vehicles website
- Open directory of web sites about Fiat
- Yahoo! Fiat SpA Company Profile
- The FIAT Forum Comprehensive forum covering all FIAT models.
Endnotes
- Fiat Group, 2001 Annual Report, p.42
- "Company Profile: Fiat S.p.A.", Datamonitor, May, 2005, p.18
- Ibid. p.18
- Ibid. pp.21 & 23.
- Mark Graham, "So Cool it Hurts", CAR Magazine, October 2005, p.26
- Fiat Group, "Automobiles: Fiat Auto" (accessed December 29 2005).
- John Tagliabue, "Will GE's Fresco Bring Good Things to Fiat?" The New York Times September 12 1999.
- Fiat Group, "History", (accessed December 29 2005)
- Lauren Arthur "Our North Road Neighbors: When ME was home to Fiat", The Circle, p.4, December 10 1987.
- Fiat, "History."
- "Ford, Henry", Sobel, Robert, World Book Online Reference Center, World Book, Inc.
- Fiat, "History."
- "Fiat SpA", Encyclopædia Britannica, Encyclopædia Britannica Online. (accessed November 20 2005).
- Obituary, The New York Times, 25 January 2003, A p1+
- John R. Weinthal, "Industrial Review: AUTOMOBILES", 1992 Year in Review, Encyclopaedia Britannica, Inc.
- Automotive News 1985 Market Data Book, Crain Communications, Inc.
- Luca Ciferri, "Fresco Brings Taste of New World to Fiat", Automotive News Europe (August, 1998) vol.72, p.6
- "Saving Fiat", The Economist, December 3 2005, p.64, vol.377
- "Company Profile", pp.23-24
- "Estimated Europe"
- Fiat S.p.A., "HIGHLIGHTS OF RESULTS", 2006 Q3 Quarterly Report, p.11
- "Fiat Auto Press article" (accessed May 1 2007).
Fiat Website
Official Fiat website for Fiat cars, insurance & UK dealer information
Fiat.co.uk | Fiat Showroom : Latest Offers, Book a Test Drive, Fiat ...
Fiat Car Showroom. View all new Fiat cars including the new Fiat 500 at Fiat.co.uk. ... HELP ME CHOOSE. FIAT 500: The little beauty you can make your own; BRAVO:
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Fiat.it - Starting Page
The official Fiat web site, with a showroom, history, contact information, dealer listings, event calendar, and news.
Fiat
500 PICNIC: party reports On July 3 2008, thousands of people got together to celebrate the first birthday of the 500 with the 500 PICNICs. Read the news
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FIAT Motor Club (GB)
The motor club that caters for owners and enthusiasts of FIAT cars of all ages ... Welcome to the website of the Fiat Motor Club (GB). If you are a new visitor to our site and ...
Fiat - Wikipedia, the free encyclopedia
Fiat S.p.A. (Fiat Group) is an Italian automobile manufacturer, engine manufacturer, financial and industrial group based in Turin, Northern Italy.
Fiat Belgium
Moss Rose Motors, Fiat, Nissan & MG Rover Main Dealer, Macclesfield ...
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