Strengths and Weaknesses of Fiat

Fiat S.p.A is the largest industry enterprise of Italy, headquartered in Turin. In now days, the Group has present their business in 44 countries, built 155 manufacturing plants worldwide and set up 472 affiliates across the world.

As a prestigious multinational company, Fiat Group apparently has their own strengths in guarding their market realm and expanding their market on this planet.

Firstly, Fiat is actively engaged in diverse business areas such as, automobile manufacture, publishing and communications, agricultural and construction equipment, and even providing financial services. In their largest business segment, automobiles, there are nine automobile marks under their management. Models of these car marks range from small economy cars such as Fiat 500 to luxury cars such as Ferrrari f430. The extensive range of car production protects the Group from being heavily impacted by demand fluctuation of certain automobile model and still remains competitive as an integrated corporation. Secondly, the Group can directly apply the latest technologies developed by some of their company segments to other segments so that the company segments receive complementary support. Therefore, this enables Fiat to develop newer technologies and remains a leading role in the market.

Like all the companies are not flawless in the world, weaknesses are also highly notable in Fiat Group. In recent years, a significant number of vehicles recalls were made by Fiat Motor. For example, Chrysler Group, affiliated with Fiat, recalled 127,350 vehicles in U.S and Canada market in May 2012 due to electrical stability control and anti-lock braking systems problems. More subsequent recalls were made regarding excessive corrosion, heating and air conditioning problems, and airbag malfunctions. The recalls affected consumers’ confidence on purchasing Fiat’s product and also negatively impacted their image to a great extent. To avoid such recalls in the future, Fiat are strongly...