Friday, July 6, 2012

Fiat Moves into the Slow Lane

Fiat is feeling the pinch. It closed a factory in Sicily last year and Fiat boss Sergio Marchionne this week raised doubts about the future of another Italian plant. And then there’s its investment plan for Europe, cut back by €500 million.

To counter the costs savings, Mr. Marchionne wants to squeeze even more cars out of Fiat’s existing factories.

Fiat’s downsizing is worrying for the rest of corporate Europe. Its woes show just how tough it is, even for a successful company like Fiat, to survive without making dramatic changes.