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MANAGERIAL STRATEGIES TO COMBAT THE AUTOMOTIVE INDUSTRY CRISIS: THE CONTEXT OF FIAT AUTOMOBILES SRBIJA

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Author(s): Prof. Francesco Scalera (corresponding author)

Journal: International Journal of Economics and Research
ISSN 2229-6158

Volume: 02;
Issue: 04;
Start page: 153;
Date: 2011;
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Keywords: Management | Enterprise | Fiat Automobiles | Production | Serbia

ABSTRACT
In recent years, in the most industrialized countries, the leading companies in the field have safeguarded their competitiveness, looking for greater production efficiency, in order to better the price-quality ratio of products and services to the customer. The only way to achieve this goal was the transfer of either a part or the whole production process in those geographical areas where the cost of certain inputs (e.g. labour) is definitely lower than the manpower available in the local market. Thus, at the end of 2009, the Fiat Group made a joint venture with the Serbian government for the creation of Fiat Automobiles Srbija (FAS), which provides for a majority stake of 67% for the Group, while the remaining 33% is controlled by the Balkan State. So, in the light of what described above, the present paper, starting from the financial, production, social and economic data collected, aims at analyzing the terms of this important international managerial operation, and then investigating the possible advantages and disadvantages ensuing from both for the Turin firm and the Serbian government. Afterwards, the model of the organizational structure adopted to ensure competitiveness in the new ItalianSerbian company will be examined; the work will then consider the strategic aspects as well as the future expectations that the Turin company is willing to achieve thanks to this important managerial transaction
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