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Fiat's Turnaround Takes Root
Keywords:
The transformation of Fiat Auto. Marchionne relying on "my kids", getting good people throughout the Fiat global operations and outside of a younger generation, who were open to doing things in a new way. He had the courage to unassumingly go about the business of remaking Fiat, by removing middle and upper managers who produced a kind of paralysis or sclerosis in Fiat, making change impossible after years of a failed culture embedding itself. And in their place he brought in an energetic courageous bunch of younger managers and designers. It would be fair to say that he tore up the old plans, tore up the old organization charts, tore up the car plans and designs in the pipeline, tore up the failed models and put in place new ones- the Bravo for the Stilo, and tore up the old management, put in new people and tasks and wedded them in an informal way, with their own culture developing along the way. The were teams and their tasks, all wedded together in an informal arrangement, in close proximity, with informal communication. Marchionne saw his role as helping people reach decisions, setting stretch goals, and encouraging levels below him to take responsibility and make courageous decisions. He saw the Cinquicento as his version of the Apple iPod, and benchmarked Fiat against Apple, so he was looking outside the auto industry for people to emulate and for new ideas. He himself was from outside the auto industry.
Melding different cultures in new companies.
05/28/2006
Airbus with its European operations and Fiat with its planned Opel-Fiat-Chrysler combination. How these combinations can work, and the new global environment that makes them an opportunity, with younger leaders and the right kind of management.
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The new Chrysler that is emerging from bankruptcy with government help under Fiat's Marchionne.
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Marchionne has kept many of the managers from the previous Chrysler. Jim Press is deputy CEO and adviser. He came from Toyota. Everything else will change. He is flattening the organization structure to improve communication and speed. Smaller car lineup will replace the prior lineup, and Fiat's engine technology will provide help for fuel efficient cars.
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Fiat, in Deal With Union, Will Buy Rest of Chrysler
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A Fiat takeover of Chrysler as Cerberus takes the exit.
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Fiat's 35% stake in Chrysler was obtained with an offer to retool aChrysler plant and offering its engine and transmission technology for small cars. Fiat has an option to take a 55% stake in Chrysler. Its a low cost way for Fiat to sell its popular Fiat 500 and other small cars in the USA.
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Chrysler's lineup of cars prominently includes Fiat models and small car technology 2009-2013
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Chrysler to Set Up 200 Fiat Dealerships
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Some Chrysler Dealers See Un Problema in Fiat's Plans
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Fiat performance
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Fiat to Expand Production at China Venture
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Truck Sales Help Profit Rise 32% at Chrysler
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Chrysler depends a lot on Italian designers for its new cars.
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U.S. Auto Sales Surge in December
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With little to show that is new in its product lineup, Chrysler has a lot resting on its redesigned 2011 Jeep Grand Cherokee.
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Fiat Chrysler Profit in U.S. Declined 56% in 2014 on Charges From Merger
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Fiat=Chrysler falling behind in quality compared to GM, Ford and other automakers in the U.S. market.
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Fiat's full ownership of Chrysler- management and business skills of Marchionne's team leads to valuable diversification (3)
11/10/2006
A win-win for the U.S., Chrysler, and Fiat, is the result of the remarkable business and management skills of Sergio Marchionne of Fiat. An integrated global company emerges for the first time under Marchionne's leadership. An outsider to the auto industry Marchionne looked for good business talent and younger managers not tied to old ways. He benchmarked Fiat products to Apple products in a innovative way only an outsider would do.
Linked Articles
BusinessWeek 11/10/2006
In Turnabout, Chrysler Profit Offsets Fiat Loss
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