FIAT (Acronyme of F abbrica I taliana has utomobili T orino, manufactures Italian Turin cars), is a Car manufacturer, based with Turin. It is controlled by the family Agnelli, via the group Ifil.
The group controls marks FIAT Car, FIAT Professional, Alfa Romeo, Lancia, Ferrari and Maserati and IVECO in the sector of the commercial vehicles.
With 2,20 million vehicles (all standards) products in 2006, group FIAT-IVECO-Irisbus is classified with the 7th world rank behind General Motors, Toyota, Ford, Volkswagen, DaimlerChrysler, Renault - Nissan and equal has PSA Peugeot-Citroen. These figures show a rise of more than 10% over the year 2005, for a turnover of 52 Mds€.
Following the death of Umberto Agnelli the May 27th 2004, it is Luca di Montezemolo, until there president de Ferrari, who was appointed president of FIAT SpA, John Elkann, grandson of Gianni Agnelli being appointed vice-president.
The group underwent a trading loss of 979 million euros in 2003 and more than one billion in 2004, which will remain in the memories of the leaders the blackest year of the century of existence of the company. The situation was clearly rectified since.
As of its rupture General American Motors, at the end of 2004, group FIAT very quickly found the financial health. In 2005, thanks to the success of its new models Panda and Large Punto, the results became positive and the assessment 2006 has allowed the distribution of the first dividend for 5 years. The results at end of 3rd quarter 2007 show a progression of 17,8% for FIAT Group Car and higher than 23% for Iveco and CNH.
In 2007 group FIAT goes much better. Its market shares strongly progressed in particular in automobile industry where they exceed 32% in Italy, and 9% in Europe; since the beginning of the year 2007, FIAT Car precedes Renault. New the FIAT 500 which was presented on July 4th, 2007, exactly 50 years after legendary “the yoghourt pot” of 1957 still will reinforce the positions of the mark, it collected more: 50000 orders before its official presentation. Growth of divisions heavy trucks IVECO and farm equipment and of construction CNH - NEW HOLLAND exceeds the 17% annual.
Magneti-Marelli , 100% (industrial Components for the car, created in 1919)
Foot-note : FIAT and General Motors broke their agreements crossed at January 1st, 2005. General Motors has to restore with FIAT the 10% of the capital which it still held in its subsidiary company FIAT Car, common companies FIAT General Motors Powertrain and Purchasing were dissolved, each one taking again its respective contributions. FIAT empoche with the passage 2 billion dollars and authorizes OPEL to be built under license, platform FIAT 199 of G-Punto for the Corsa news and will continue the sale of its diesel engines 1,3 Mjt and 1,9 Jtd 8v and 16v Mjt with the group General Motors for a use on the only marks Opel, Cadillac and Isuzu; Daewoo and its new denomination Chevrolet while being definitively excluded.
Waited until Suzuki also left the tutorat General Motors at the end of the year 2005, Japanese will buy directly with FIAT these same engines to equip their own range and will manufacture, under license FIAT Powertrain, the diesels 2.0 Multijet which leave in 2007.
Irony of the history: General Motors believed capacity to swallow FIAT Car after to have emptied it its engineers and tried to block his rise. General Motors lamentably failed. In April 2007, the quoted value of FIAT SpA is higher than that of General Motors and joined together Ford.
Since this divorce, FIAT made more than fourteen cooperation agreements with various manufacturers in the world including the one on June 19th, 2007 with the DaimlerChrysler group for the supply of: 80000 diesel engines per annum between 2009 and 2016. they are the very famous FIAT F1C which equips the Iveco Daily in particular, of 3l cubic capacity and 177 cv.
Itedi (Italiana Edizioni Spa, Stampa), 100%
Italenergia (a) , 24,6%
Giovanni Agnelli which was a man of action, wanted very quickly to constitute a large company, of national importance, so that the young person Italy can remake his industrial backwardness on his French and German neighbors. The idea of Agnelli was to produce quickly Automobile S “popular”, usable by the greatest number, and it succeeds in persuading a group of financial inhabitants of Turin of the interesting prospects for the automobile production for this type.
As of the beginning it gives up the development of original models which would have made him waste time and money, and turns consequently to an existing model, designed by Ceirano and Faccioli, which had already sold some specimens of them. The events which follow show well the determination and the eagerness of Agnelli. The Ceirano company, declared on October 23rd 1898, is defined clearly as a “company for the manufacture of automobile prototypes” and as of on March 20th 1899 engineer Faccioli deposits the patent of its car. Hardly its ratified constitution, new business F.I.A.T repurchases the actions and the patents of the Ceirano company. It has a viable model then, the hardly started FIAT 3 1⁄2 HP, and capital; moreover it sub-contracted manufacture of the parts to tested companies.
F.I.A.T. inaugurate its first large factory in 1900, with the n°35 of Corso Dante. On a surface of 12000 m2, 150 workmen will produce 24 cars during this year 1900.
In 1902 the company starts to acquire its first noble letters in the automobile sport: FIAT presents the 24 HP Corsa, first car of competition carried out by the manufacturer, the nine FIAT engaged on the automobile Tour of Italy cross all the finishing line, Vincenzo Lancia gains the hill climb Sassi-Superga at the wheel of the 24 HP Corsa and Giovanni Agnelli establishes a new record on the FIAT 8 HP at the time of the Tour second of Italy.
In 1904, the oval logo on blue bottom, drawn by Biscaretti, is adopted.
In 1906 manpower of the FIAT rise with: 1500 paid, producing 1150 cars, and the company undertakes its first acquisitions by buying the Ansaldi company. On the sporting level Vincenzo Lancia gains Coppa d' Oro in Milan, while Mathis allocates Targa d' Oro of Coppa Herkomer to the wheel of a FIAT 40 HP. It is as at this time as exports start to take off, until representing two thirds of the production. FIAT adopts a strategy of growth centered on universalization and conquers big parts on growth markets, in particular in the United States, the point to create the Automobile FIAT Corporation in 1908 with the construction of a factory for a local manufacture.
The manufacturer starts to produce models dedicated to a specific use, like Standard FIAT 1 Fiacre, dedicated to the public transport (adopted in particular by the towns of New York, Paris, London…), and which will be produced with: 1600 specimens; but also of the commercial vehicles, the engines for the navy, the trucks, the trams, the planes…
In 1916 begins construction from the factory of the Lingotto, “ingot” 500 meters length, in Turin, under the direction of the architect Giacomo Mattè Trucco. When its construction is completed in 1922 it is largest and the most modern factory of Europe and consequently the emblem of Italian auto industry. The building, which occupies five stages is absolutely revolutionist and shelters on his roof a futuristic test track. This building is a masterpiece in the application of the Fordisme: the spare parts arrive at the ground floor and the cars are assembled with the wire of the 5 stages, transported by elevators, for finally being tested on the oval and inclined track which occupies the roof.
At this time of its history, the firm inhabitant of Turin is already the engine of Italian industry and its production starts to very largely diversify (railroads, steel-works, electricity, transport public…), so much so that during the First World War it produces trucks and armoured tanks, planes and engines, but also weapons and ammunition, and even uniforms, boots and bags for the soldiers. FIAT puts its whole industry at the service of the effort of war and leaves grown this conflict: the company counted: 4000 employees in 1914, it counts some: 40000 in 1918.
In the years 1930, FIAT is already an industrial empire of international scale. The group has factories on three continents (Europe, Latin America and even Asia). It is as at that time as it creates the mark Simca in France, FIAT-NSU become FIAT Neckar in Germany and later SEAT in Spain. However the policy of Autarky of Mussolini force the company to re-examine its development plans with international and to concentrate on the domestic market and heavy industries. The sectors aeronautics and railway, as well as public works, know a strong growth then. The slogan of FIAT is then: “On ground, sea and in the airs”. However, the growth perdure and the day before the Second world war manpower of the group are assembled to 55.000 employees.
In 1937 begins the construction of the factory of Mirafiori, which introduces the most advanced principles of industrial engineering of its time and confirms the orientation of the company towards the mass production. Its construction will be completed in 1939, and the new industrial complex will be inaugurated in the presence of Mussolini.
FIAT had and preserved contacts as much with the Nazis and the fascists, that with the allies and Resistance.
In 1945, the Senator Giovanni Agnelli dies and, his/her son Eduardo being deceased in an air crash 10 years before, it is Vittorio Valletta which assumes the presidency of FIAT.
It is only in 1948, and thanks to the financial aid of the Marshall plan, that the rebuilding of the factories destroyed during the war finishes. In 1950 the production found its prewar level, one speaks then about “Italian miracle”. Vittorio Valletta pursues the strategy of growth, of acquisitions and diversification launched by Agnelli and the profits start again to grow and manpower to be increased.
In 1958 it is the economic Boom and the production increases in a way impressive, drawn by the production from cars and agricultural machinery. The factories of Mirafiori double their capacity, more: 50000 workmen work there in two stations and sometimes three. Automobile industry is the symbol of the Italian economic miracle, and FIAT, with 95% of the production of the country, plays a part of first order. The number of workmen reaches a maximum of: 230000.
After having helped with the creation of automobile industry in Yugoslavia with Zastava in the years 1950, in Spain with Seat, FIAT is the principal collaborator - originator and supplier - VAZ (Lada) in Soviet Union with Togliatti; it will also provide the licenses of manufacture for: 600000 Zigouli-Lada specimens per annum, copies of the models FIAT 124 and FIAT 125. The cars FIAT, in particular their platform, will be used as a basis for the unit of the manufacturers of the socialist camp, in particular the Soviet manufacturers as well as Polish FIAT-Polski FSO (either directly, or indirectly by the collaboration of Soviet manufacturers using the processes and technologies FIAT).
Starting from the Years 1990, the benefit of FIAT start to decline, and this in spite of the presence of popular models (Panda, Uno, Tipo). The image of FIAT concerning its reliability and its completion, supplied with an often chauvinistic press, as in France in particular, makes him more and more wrong vis-a-vis the other manufacturers. This reputation diverts little by little the customers and the sales drop after 1990 (in particular in France where they fall from: 150000 with less: 60000 vehicles in 2000).
The group, always chaired by Gianni Agnelli then 80 years old, is then in great difficulty, the losses were never also important, and the boards of directors follow one another without success. The rumor on the assumption of a repurchase by a competitor is even advanced.
In March 2000 an agreement in two times is signed: General Motors takes, initially, 20% of the capital of division Automobiles FIAT and FIAT S.p.A. receives in exchange 6% of the totality of the group General Motors.
FIAT Stilo, launched on September 11th 2001 is a commercial failure in Europe, because of a bad positioning on the market, whereas this vehicle is technically very good and of good invoice and which is besides an excellent success in Latin America where it is also manufactured.
In June 2002, FIAT Car, burdened by a debt with 6,6 billion euros, is obliged to call upon the banks to relieve its treasury. A banking syndicate subscribes to 3 billion euros giving them a guarantee on part of the capital and buys 51% of the subsidiary company of Fidis credit. Among other measurements taken then, FIAT Group deposits in guarantee 34% of Ferrari near the financial group Mediobanca against 775 million euros. The business makes great noise then.
After the death of Gianni Agnelli in 2003, small son of the founder of FIAT, then of his/her brother Umberto Agnelli in 2004, it is Luca Cordero di Montezemolo, the president of Ferrari, which is called with the presidency of group FIAT. It is surrounded by a new executive team animated starting from June 2004 by a new managing director, Sergio Marchionne which will insufflate with the group a new dash and will reorganize completely the management of FIAT Car. In spite of the success of new the Panda, the new managing director imposes a severe reorganization, by replacing all the executive team and while cutting in the costs but not in manpower and by reorganizing manufacture.
This management quickly will bear its fruits as of 2005 and will stop the slow descent into Hell which FIAT Car had known. In 2004, the option to sell of FIAT concerning the automobile part near General Motors was broken, n the other hand of the payment by General Motors of an allowance of rupture of 1,55 billion euros in cash more the restitution of all the participations in FIAT Car, making it possible group FIAT to take again 100% of its automobile subsidiary company and to join again very quickly with its first benefit as of the same year.
Free from its intrigues, FIAT Car quickly will pass from partial and targeted industrial alliances. FIAT restructures and modernizes quickly its lines of products and like admitted it Luca de Meo, the director of the mark, to generate “ the money with a narrow range and few investments ” because “ it is necessary for us to put the investments on the cars which make large volumes, more than one hundred thousand units per annum (...) FIAT must remain popular but become again modern and design ”.
However, resurrection is based on Large FIAT Punto, indicated by Giugiaro and for which the values and the identity of the mark are finally rehabilitated. This new generation of its famous compacts, becomes in a few weeks the vehicle more sold all categories confused in Europe since the beginning of the year 2006. In April 2006 begins marketing from the first true 4x4 civil of the mark, FIAT Sedici, conceived in partnership with Suzuki. In May 2006, FIAT opens in Mirafiori close to Turin, the greatest automobile concession of the world, gathering all the models of group FIAT is: FIAT, Alfa Romeo, Lancia, Ferrari and Maserati.
Even if the current success of only one model can nothing let predict for the future, the factories turn from now on to full mode and FIAT intends to maintain its growth of the sales to the current rhythm of 23% in 2006, tonic of 6,4% with more than 9% with the European prize list and forecasting a benefit of 1 billion euros for the year 2006, and like underlined it Sergio Marchionne, FIAT is become again today a serious competitor on a world level. In Italy even where the group had before the Années 1980 70% of market shares, it is in 2006 passed by again above the bar of the 31%.
With its first benefit, FIAT put forward fine September 2006 an option of repurchase, near Mediobanca which enabled him to recover the 29% of Ferrari yielded in 2002 for approximately 800 million euros, thus carrying its control with 85%. The 5% remainders had been yielded by the bank to the funds of investments Mudabala of Dubai. Piero Ferrari, the son of Enzo has 10% more of the group.
Mid- July 2007, the Market cap of the group still dying man three years earlier is higher (30 billion euros) that cumulated of Ford and General Motors (27,5 billion).
The year 2007 is announced more flourishing than 2006 with the arrival many new models. FIAT announced 23 from here at 2010 of them.
First of all, in January 2007, the news FIAT Cheer was presented officially to Rome. In spring, as of the living room of Geneva, the news FIAT Linea, presented in preview to the living room of Istanbul in November 2006, will be launched in the emerging markets like Turkey, Brazil, Argentina, India and Russia, in the same countries where it will be manufactured. This model, a Grande Punto with trunk should be marketed in Europe (Germany and Spain) in 2008. It is not a model low cost .
Then on July 4th, 2007, 50 years after day for day, appeared the re-appeared wonder of the past, FIAT 500 II Trepiùno, a car with the design retro very mode, evoking mythical FIAT 500 of 1957, a little like the Minis or New Beetle, but by offering four true places.
The objective of group FIAT is to build in the world 4 million motor vehicles since 2010.
As for all the manufacturers in the world, the models of the beginning of the century were baptized number of horses of output engine.
As from 1910, FIAT used Standard formula the “1”… etc, it is into 1920 that FIAT will reorganize the whole of its productions and chooses to give internal codes to its products. Thus one sees appearing the FIAT 501 in 1921.
5 being the code of automobile division, 6 ghost with the industrial vehicles trucks and bus, 7 with the farm tractors, the 1 being reserved him with division engines.
As from 1936, the name of the cars takes again the value of the cubic capacity, whereas the produced code remains on basis 500.
It is the shortly after the second world war that FIAT works out a plan of new models and changes its code names into taking the 1 for the cars, the 2 for the light industrial vehicles, the 3 for the coaches of line and luxury, the 4 for the urban buses, the 5 for the interurban buses, the 6 remainder for the trucks, the 7 for the farm equipment and of public works, the 8 allotted to Lancia and the 9 at Alfa Romeo.
Thus the FIAT 600 bears code name WINE: ZFA100.
In 1966, with the arrival of Gianni Agnelli to the orders of the empire FIAT, the cars take again the name of code name and one will know the FIAT 124, whose code WINE is ZFA124. This formula will be abandoned in 1978 with the profit of whimsical names like the FIAT Ritmo, whose code is ZFA138.
In the group, Lancia Thema is known under the name of code ZLA834 and Alfa Romeo 156: ZAR932.
In 2007 codes 1 very soon almost all will be used, FIAT will have to call upon a new system in the future.
After the repurchase many other manufacturers in Italy and in the world, FIAT V.I rose with the second European rank in the speciality.
It is into 1975 that this division which was composed then of the marks FIAT V.I, FIAT OM, Lancia V.I, Unic - FIAT and Magirus, transforms themselves into only one mark and becomes IVECO.
Foot-note: the models in fatty are currently in the course of manufacture.
Division FIAT V.I had bonds privileged with a great number of other manufacturers like:
OM : Dispensary Meccaniche di Brescia - Italian Manufacturer established in the East of Milan whose specific productions of trucks of average range were completely integrated in range FIAT. Tigrotto, Leoncino, Cerbiatto, Daino, and of large tonnages, Titano used in version building site in configuration 8x4 also for exceptional transport.
Abroad:
FIAT created a division specific the shortly after the First World War under label FIAT. Then the marks OM and SIMIT, manufacturers of mechanical shovels were quickly grafted, to create FIAT MT.
It is only into 1974 that FIAT launched its first great international cooperation by taking again American Allis Chalmers to create FIAT-ALLIS.
In 1986, FIAT concludes a collaboration agreement with Japanese HITACHI in the field from the excavators of strong power and created FIAT-Hitachi.
During this period, FIAT MT will repurchase Italian Benati and German O&K.
The joint-venture FIAT-Hitachi is dissolved in 2001, Japanese wanting to take again his independence.
FIAT takes again then other large Japanese constructor KOBELCO and integrates it in its group CNH Global, created in 2002, with the mark New Holland which diffuses today the whole of the products in the world.
Known under traditional marks FIAT, OM, and Laverda in Europe, the FiatAgri Group joined together its associated marks like SOMECA in France, to form FiatGeotec.
After the repurchase of division Ford agriculture and trucks, the new products of total range FIAT were often diffused under the label New Holland.
In 1999, FIAT Holding repurchases the American group Case Corp. and includes it in its range of farm equipments and public works. In 2000, the total mark of group FIAT in the field becomes CNH Global - Box New Holland.
With this acquisition, all the old marks are not marketed any more except on certain markets athypic, as Austria where Steyr remained the reference.
The label CNH Global now gathers divisions farm equipments and machines of public works. It gathers the famous names which marked the world of agriculture like: FiatAgri, Someca, Laverda, Braud, Flexicoil, Ford, International Harvester, New Holland, Box, Claeys, Steyr and well of others…
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