There are two things that every Italian thinks he knows how to do better than anyone else: the coach of the national team and the CEO of Fiat. At the first defeat of the national team or at the first sign of a crisis in Fiat, lapidary judgments on the manager and CEO abound and, of course, advice on what to do to remedy the faults caused by the two incompetents is wasted. Why is Fiat in crisis? Simple, Marchionne is to blame. That before his arrival Fiat was on the verge of bankruptcy, that the market segment on which Fiat still insists (medium-low) has collapsed in Europe and in the world and that the production costs of that type of product in Italy are still too high does not seem to count for anything.
Marchionne, it is said, is a man of Finance and not of Industry. But, apart from the fact that the meaning of this formula remains very mysterious, in America they think exactly the opposite of him. It is certainly true, as many say, that Fiat has not invested enough in new models. However, it must be considered that, apart from the company's financial problems, these are investments whose return can only be had in the medium to long term.. In the immediate future, however, Marchionne brought to Fiat the "new products" deriving from the merger with Crysler.
It's not a trivial matter. The criticism of the delay in implementing the investment plan in the Italian plants (Fabbrica Italia) also needs to be better calibrated. The market trend at the moment is prohibitive. Nonetheless, investments have been made in Pomigliano and today the Campania plant is among the most modern in Europe. The Fiat crisis obviously exists and there are also the responsibilities of its managers. But to think that it is enough to change them to get out of it is a pious illusion that serves only to avoid dealing with the reality of the Italian industrial crisis.
Fiat's crisis, in fact, is not very different from that of other Italian manufacturing industries. The problems to be faced are the same for everyone: we must internationalize if you want to compete on the global market; must innovate production processes but also create new ones higher quality products and added value; finally, it is necessary raise productivity of all factors (men, machinery and capital) and that of the country.
Fiat, also thanks to Marchionne, has moved decisively in each of these directions. Today it is no longer just a large company but, for better or for worse, it is a multinational. It has greatly innovated the production process and improved its traditional products. Above all, it has changed the system of industrial relations. You can think what you want of the man's style but the fact remains that he was the first industrial manager who tried to move from a system of industrial relations based on conflict to one based on participation and shared objectives. It is exactly what should be done in all industries to try to move closer to the German co-management that many advocate but few actually want. Finally, once Termini Imerese was abandoned, he tried to safeguard the five Italian sites and so far he has succeeded.
However, until when will it be possible to do this? This is the real problem that arises for Italy. Should we invoke a common European policy for the car as we did for the steel and fibres? It is a very controversial issue, difficult to achieve and perhaps not even convenient. Instead, it is better to focus on the most critical factors of the production process, which are: innovation, productivity and flexibility; and leveraging on the greatest strengths of our automotive industry which are: quality induced activities, technological know-how, design and engineering skills.
Many today, perhaps out of spite for Marchionne, are calling for foreign intervention. Those who yesterday obstructed the transfer of Alfa to Ford today are calling for its transfer to Volkswagen. It may be that this has to be forced. But are we sure this is the right thing to do? Alfa with its brand, its history and its residual capabilities could instead be one of the levers for the redevelopment of Fiat. Think about it before throwing it away.
