Fiat Case Essay

1821 Words Feb 8th, 2014 8 Pages
Student name: ________________________________ Student ID _______________________ York University Faculty of Liberal Arts and Professional Studies School of Administrative Studies AP/ADMS 4250 Marketing Strategy, Fall 2013 Instructor: A. Rusetski, Ph.D.

EXAM 1: Case

AP/ADMS 4250 Marketing Strategy

Exam 1

Page 1 of 7

FIAT RETURNS TO CANADA1
A.RUSETSKI, PH.D

F IGURE 1: A 2011 FIAT 500

On March 18, 2011 two hundred strange looking tiny cars lined up on the streets around the Quebec Business Centre. FIAT, a major European car manufacturer, was celebrating its return to Canada after 28 years of absence. This comeback became possible thanks to a partnership with one of the
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Chrysler declared bankruptcy and the company faced a real risk of being dissolved if no one would support it financially. Talks with General Motors and Nissan ended in fiasco. Then, in 2009 FIAT stepped in and acquired 30% of the ailing American manufacturer. This provided Chrysler with much needed financial support, plus the possibility to use FIAT car platforms to manufacture smaller, more fuel efficient Chryslers in the US. In return, FIAT was getting access to Chrysler’s network of dealerships in North America, a key to FIAT’s expansion into this market.

F IGURE 2: T HE VERY FIRST FIAT MODEL 4CV MANUFACTURED IN 1899

FIAT S.p.A. is one of the oldest and the 9th largest car manufacturers in the world. The firm was established in 1899 as Fabbrica Italiana Automobili Torino (Italian Automobile Factory of Turin) and since then grew into a powerful highly diversified technology company. FIAT’s automotive business generates about 57% of FIAT’s revenues and focuses mainly on the European market. The company owns several brands including FIAT, Alfa Romeo, Lancia, Ferrari and Maseratti. Up until recently, only Ferrari and Maseratti were present in North America and it was a long‐time goal of the company to expand its smaller car sales into this market. Ironically, FIAT is

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