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The Italian Automotive Industry: Between Old and New Development Factors

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Abstract

The Italian automotive industry highlights particular characteristics compared to other countries. In Italy, there is only one important assembler, Fiat Chrysler Automobiles, which is one of the most important European automotive supply chain, characterised by a clear predominance of SMEs (Small Medium Enterprises) that were once dependent on the national producer.

The last decade has marked important changes in this historical condition. First was the internationalisation process of Fiat Chrysler Automobiles. Second, the economic and financial crisis has generated strong repercussions on the automotive industry, which, since 2008, has recorded a sharp decline in car production, especially in Italy.

Based on this ever-changing scenario, this chapter analyses the restructuring process of the Italian automotive supply chain and which development factors have changed over time.

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Notes

  1. 1.

    Fiat Chrysler Automobiles (FCA) is a part of the Exor Group controlled by Agnelli family. The FCA’s portfolio includes automotive brands such as Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Maserati and Ram Trucks. FCA also owns automotive suppliers such as Comau, Mopar and Teksid. Ferrari and Iveco (industrial vehicles, coaches and buses) are not part of the FCA group but they are controlled by Exor, the former directly, the latter through CNH industrial (capital goods).

  2. 2.

    Just after the deal with Chrysler, Fiat tried to purchase the Opel unit of General Motors without success. In 2017, Opel was sold to the group PSA (Peugeot–Citroën).

  3. 3.

    In 2017, worldwide production of FCA automobiles for passengers and small commercial vehicles has reached 4.7 million units. The production has been stable in the last three years.

  4. 4.

    In 2013, these results were worst and 46.4% and 29.8%, respectively.

  5. 5.

    Pininfarina is controlled by Mahindra & Mahindra, and Italdesign by Audi Volkswagen group.

  6. 6.

    Lancia is an old Fiat’s brand. Nowadays, it is limited to the Italian market with only one model: Ypsilon.

  7. 7.

    In Italy, all FCA employees have been contracted through a collective contract and 32.3% of them are the members of a trade union. Globally, 85% of FCA employees enjoy collective contracts.

  8. 8.

    Federazione Impiegati Operai Metallurgici (FIOM) is the workers’ union operating in the metalworking companies that belongs to the Italian General Confederation of Labour. It is the oldest Italian industrial union and is politically deployed on the left.

  9. 9.

    While it is true that, for the mobility, there is the plan for electrical vehicles, that is nothing more than the application of a European legislation for the infrastructure of alternative combustible (DAFI).

  10. 10.

    The German model is based upon the “Charter of relations” in place within the main central plant of Volkswagen. Its objective is to guarantee and increase the group’s competition and productivity. It does so by pushing for unions’ relations mainly characterised by cooperation and participation.

  11. 11.

    The network contract (in Italian, contratto di rete) is a particular juridical tool introduced by the Italian government to help the development of a more cohesive and conscious process of collaboration among companies involved in shared projects leaving untouched their full management autonomy. While the diffusion of this type of contracts is not a direct effect of public funding, the increase of a number of initiatives—above all those promoted by regions—has certainly helped. Indeed, it has been registered an increase of calls aimed at fostering networks with the objective of supporting research and innovation projects (40%), entrepreneurial development (30%) and internationalisation (22%).

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Calabrese, G.G. (2020). The Italian Automotive Industry: Between Old and New Development Factors. In: Covarrubias V., A., Ramírez Perez, S.M. (eds) New Frontiers of the Automobile Industry. Palgrave Studies of Internationalization in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18881-8_7

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