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Fiat S.p.A. From Wikipedia, the free encyclopedia This article is about the former holding company of Fiat Group. For the company that succeeded Fiat S.p.A., and owns the Fiat Group, see Fiat Chrysler Automobiles . For the subsidiary which produces Fiat branded cars, see Fiat Automobiles . Fiat S.p.A. Former type Società per azioni Traded as BIT : F Industry Automotive Media Fate Merged into successor Fiat Chrysler Automobiles , taking control of the Fiat Group. Successor Fiat Chrysler Automobiles FCA Italy S.p.A. Founded 11 July 1899 in Turin , Italy Founder Giovanni Agnelli

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Fiat S

Transcript of Fiat S

Fiat S.p.A.From Wikipedia, the free encyclopediaThis article is about the former holding company of Fiat Group. For the company that succeeded Fiat S.p.A., and owns the Fiat Group, seeFiat Chrysler Automobiles. For the subsidiary which produces Fiat branded cars, seeFiat Automobiles.Fiat S.p.A.

Former typeSociet per azioni

TradedasBIT:F

IndustryAutomotiveMedia

FateMerged into successorFiat Chrysler Automobiles, taking control of the Fiat Group.

SuccessorFiat Chrysler AutomobilesFCA Italy S.p.A.

Founded11 July 1899 inTurin,Italy

FounderGiovanni Agnelli

Defunct12 October 2014

HeadquartersTurin, Italy

Key peopleJohn Elkann(Chairman)Sergio Marchionne(CEO)

ProductsAutomobiles,commercial vehicles,auto parts, newspapers, production systems

Production output4.2 million units(mass market brands - new cars and LCVs)(2012)[1]

Revenue83.957billion(2012)[1]

Operating income3.814billion(2012)[1]

Total assets82.119billion(end 2012)[1]

Total equity13.173billion(end 2012)[1]

OwnerExor(30.05%)

Number of employees214,836(end 2012)[1]

SubsidiariesCompanies[2][show]

Websitefiatspa.com

Fiat S.p.A., orFabbrica Italiana Automobili Torino(Italian Automobile Factory of Turin), was anItalianholding companywhose original andcoreactivities were in theautomotive industry, and that was succeeded byFiat Chrysler Automobiles NV(FCA). The Fiat Group contained many brands such as Ferrari, Maserati, Fiat, Alfa Romeo, the Chrysler Group, and many more. On 29 January 2014, it was announced that Fiat S.p.A. (the former owner of Fiat Group) was to be merged into a new Netherlands-based holding companyFiat Chrysler Automobiles NV(FCA), took place before the end of 2014.Fiat Chrysler Automobilesbecame the new owner of Fiat Group.[3]On 1 August 2014, Fiat S.p.A. received necessary shareholder approval to proceed with the merger (which followed board approval).[4]The merger became effective 12 October 2014.[5][6]Fiat was founded in 1899 by a group of investors, includingGiovanni Agnelli. During its more than century-long history, Fiat has also manufactured railwayenginesand carriages,military vehicles, farmtractors, andaircraft. In 2013, Fiat (together with Chrysler) was the second largest European automaker by volumes produced, and theseventh in the worldahead ofHonda,PSA Peugeot Citron,Suzuki,Renault, andDaimler AG.Over the years, Fiat has acquired numerous other automakers: it acquiredLanciain 1968, became a shareholder ofFerrariin 1969, took control ofAlfa Romeofrom the Italian government in 1986, purchasedMaseratiin 1993, and became the full owner ofChrysler Group LLCin 2014. Fiat Group currently produces vehicles under twelve brands:Abarth,Alfa Romeo,Chrysler,Dodge,Ferrari,Fiat,Fiat Professional,Jeep,Lancia,Maserati,Ram Trucks, andSRT.In 1970, Fiat employed more than 100,000 in Italy when its production reached the highest number, 1.4 million cars, in that country.[7]As of 2002, Fiat built more than 1 million vehicles at six plants in Italy and the country accounted for more than a third of the companys revenue.[7]Fiat-brand cars are built in several locations around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is the market leader.[8][9]The group also has factories in Argentina, Poland and Mexico (where Fiat-brand vehicles are manufactured at plants owned and operated by Chrysler for export to the U.S., Brazil, Italy and other markets) and a long history of licensing manufacture of its products in other countries. It also has numerous alliances and joint ventures around the world, the main ones being located in Serbia, France, Turkey, India and China.Gianni Agnelli, the grandson of founder Giovanni Agnelli, was Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which timeCesare Romitiserved as chairman. He was succeeded briefly by Paolo Fresco, who served as chairman, and Paolo Cantarella, as CEO.Umberto Agnellithen took over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004,Luca Cordero di Montezemolowas named chairman, with Agnelli heirJohn Elkannbecoming vice chairman (at the age of 28), and other family members also serving on the board. On 1 June 2004, Giuseppe Morchio was replaced bySergio Marchionneas CEO.Contents[hide] 1History 1.1Gianni Agnelli 1.2Paolo Fresco 1.3Sergio Marchionne 1.4Acquisition of Chrysler 2Activities 2.1Principal subsidiaries 2.2Alliances and joint ventures 2.3Automotive 2.4Trucks & Buses 2.5Commercial vehicles 2.6Agricultural and Construction equipment 2.7Components 2.8Metallurgical products 2.9Production systems 2.10Services 2.10.1Construction 2.10.2Information technology 2.11Publishing and communication 2.12Other activities 2.12.1Aviation and motorcycles 2.12.2Weapons 2.12.3Rail transport 2.12.4Recreation 3Enterprises outside Italy 3.1Fiat Automveis (Brazil) 3.2Fiat Argentina 3.3Fiat Automobili Srbija 3.4Polski Fiat/FSO (Poland) 3.5AutoVAZ Lada (Russia) 3.6Bulgaria 3.7Tofa (Turkey) 3.8SEAT (Spain) 3.9Ethiopia 3.10Egypt 3.11India 3.12Pakistan 3.13Sri Lanka 3.14North Korea 3.15China 4See also 5References 6External linksHistory

Fiat 3 CV (1899)

Corso Dante plant

Fiat tractor in a 1919 American magazine article

Lingottofactory (1928)

Advertisement, 1939

Mirafiori plant

Lingottofactory (today)Giovanni Agnelli, with several investors, founded the Fabbrica Italiana Automobili Torino (F.I.A.T.)societ per azioni (S.p.a.),[10]Italian Automobile Factory of Turin, in 1899. Itsacronymousname was changed to upper- and lower-caseFiatin 1906.[11]Agnelli led the company until his death in 1945, whileVittorio Vallettaadministered the firm's daily activities. Its first car the3 CV(of which only 24 copies were built, all bodied byAlessioof Turin)[12]strongly resembled contemporaryBenz,[13]and had a 697cc (42.5cuin) boxer twin engine.[13]In 1903, Fiat produced its first truck.[14]In 1908, the first Fiat was exported to the US.[14]That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became popular in Europe.[15]By 1910, Fiat was the largest automotive company in Italya position it has retained since. That same year, a new plant was built inPoughkeepsie, NY, by the newly founded American F.I.A.T. Automobile Company.[16][17]Owning a Fiat at that time was a sign of distinction. The cost of a Fiat in the US was initially $4,000[18]and rose up to $6,400 in 1918,[19]compared to $ 825 for aFord Model Tin 1908,[20]and $ 525 in 1918, respectively.[21]DuringWorld War I, Fiat had to devote all of its factories to supplyingthe Allieswith aircraft, engines, machine guns, trucks, and ambulances. Upon the entry of the US into the war in 1917, the factory was shut down as US regulations became too burdensome[citation needed]. After the war, Fiat introduced its first tractor, the 702.[22]By the early 1920s, Fiat had a market share in Italy of 80%.[23]In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company. However, theItalian Socialist Partyand its ally organization, theItalian General Confederation of Labour, in an effort to effect a compromise with the centrist parties ordered the occupation ended. In 1922, Fiat began to build the famousLingottocar factorythen the largest in Europewhich opened in 1923. It was the first Fiat factory to use assembly lines; by 1925, Fiat controlled 87% of the Italian car market.[24]In 1928, with the509, Fiat included insurance in the purchase price.[25]Fiat made military machinery and vehicles during World War II for theArmyandRegia Aeronauticaand later for the Germans. Fiat made obsolete fighter aircraft like the biplaneCR.42, which was one of the most common Italian aircraft, along withSavoia-Marchettis, as well as light tanks (obsolete compared to their German andSovietcounterparts) and armoured vehicles. The best Fiat aircraft was theG.55fighter, which arrived too late and in too limited numbers. In 1945the yearMussoliniwas overthrowntheNational Liberation Committeeremoved the Agnelli family from leadership roles in Fiat because of its ties to Mussolini's government. These were not returned until 1963, when Giovanni's grandson,Gianni, took over as general manager until 1966, as chairman until 1996.Gianni Agnelli

Gianni Agnelli (in the center) and the Fiat board of directors meet Italian PresidentSandro Pertini(at his right) during an official visit to the newSevel Val di Sangrofactory, 1981Among the younger Agnelli's first steps after gaining control of Fiat was a massive reorganization of the company management, which had previously been highly centralized, with little provision for the delegation of authority and decision-making. Such a system was effective in the past, but lacked the responsiveness and flexibility needed by Fiat's steady expansion, and the growth of its international operations in the 1960s. The company was reorganized on a product-line basis, with two main product groupsone for passenger cars, the other for trucks and tractorsand a number of semi-independent division and subsidiaries. Top management, freed from responsibility for day-by-day operations of the company, was able to devote its efforts to more far-reaching goals. In 1967, Fiat made its first acquisition when it purchasedAutobianchi; with sales amounting to $1.7billion, it outstripped Volkswagen, its main European competitor, and in 1968 produced some 1,750,000 vehicles while its sales volume climbed to $2.1billion. According toNewsweekin 1968, Fiat was "the most dynamic automaker in Europe...[and] may come closest to challenging the worldwide supremacy of Detroit." Then, in 1969, it purchased controlling interests in Ferrari and Lancia. At the time, Fiat was aconglomerate, owningAlitalia, toll highways, a typewriter and office machine manufacturer, electronics and electrical equipment firms, a paint company, a civil engineering firm, and an international construction company. Following up on an agreement Valletta had made with Soviet officials in 1966, Agnelli constructed theAvtoVAZplant in the new city ofTogliattigradon theVolga. This began operation in 1970, producing a local version of theFiat 124as theLada. On his initiative, Fiat automobile and truck plants were also constructed in industrial centers ofYugoslavia, Poland, Bulgaria, and Romania.Despite offering a relatively competitive range of cars, Fiat was not immune from the financial pressures that the auto industry confronted following the 1973oil price shock. Towards the end of 1976 it was announced that the Libyan government was to take a 9.6% shareholding in the company in return for a capital injection worth an equivalent of 250million.[26]The size of the Libyan investment is apparent when it is compared to the 310millionIMFloan that the Italian government was trying to negotiate at the time.[26]Other aspects of the Libyan agreement included the construction of a truck and bus plant atTripoli.[26]Chairman Agnelli candidly described the deal as "a classic petro-money recycling operation which will strengthen the Italian reserves, provide Fiat with fresh capital and give the group greater tranquility in which to carry out its investment programmes".[26]Equally noteworthy was the fact that despite the dilutive effect of the Libyan investment on existing shareholders, the company's largest shareholder, the Agnelli family, retained a 30% stake in the recapitalised business.[26]In 1979, the company became a holding company when it spun off its various businesses into autonomous companies, one of them being Fiat Auto. That same year, sales reached an all-time high in the US, corresponding to theIranian Oil Crisis. However, when gas prices fell again after 1981, Americans began purchasingsport utility vehicles,minivans, andpickup trucksin larger numbers (marking a departure from their past preference for large cars). Also, Japanese automakers had been taking an ever-larger share of the car market, increasing at more than half a percent a year. Consequently, in 1984, Fiat and Lancia withdrew from the United States market. In 1989, it did the same in the Australian market, although it remained in New Zealand.In 1986, Fiat acquired Alfa Romeo from the Italian government. Also, in 1986 15% of Fiat company stock was still owned by Libya, an investment dating back to the mid-seventies. US foreign policy under President Reagan's administration canceled a Pentagon contract to produce earth movers with Fiat and pressured the company into brokering a buyout of the Libyan investment. In 1992, two top corporate officials in the Fiat Group were arrested for political corruption.[27]A year later, Fiat acquired Maserati. In 1995 Alfa Romeo exited the US market. Maserati re-entered the US market under Fiat in 2002. Since then, Maserati sales there have been increasing briskly.Paolo FrescoPaolo Fresco became chairman of Fiat in 1998 with the hope that the veteran ofGeneral Electricwould bring more emphasis on shareholder value to Fiat. By the time he took power, Fiat's market share in Italy had fallen to 41%[citation needed]from around 62% in 1984.[citation needed]However, a Jack Welch-like management style would be much harsher than that used by the Italians (e.g., precarious versus lifetime employment). Instead, Fresco focused on offering more incentives for good performance, including compensation using stock options for top and middle management.However, his efforts were frustrated by union objections. Unions insisted that pay raises be set by length of tenure, rather than performance. Another conflict was over his preference for informality (the founder, Giovanni Agnelli, used to be a cavalry officer). He often referred to other managers by their first name, although company tradition obliged one to refer to others using their titles (e.g., "Chairman Fresco"). The CEO of the company, Paolo Cantarella, ran the day-to-day affairs of the company, while Fresco determined company strategy and especially acted as a negotiator for the company. In 1999, Fiat formed CNH Global by merging New Holland NV and Case Corporation.In 2003, Fiat shed its insurance sector, which it was operating through Toro Assicurazioni to the DeAgostini Group. In the same year, Fiat sold its aviation business, FiatAvio to Avio Holding. In February 2004, the company sold its interest in Fiat Engineering, as well as its stake in Edison.Sergio Marchionne

Sergio Marchionne, Chief Executive Officer of Fiat GroupSergio Marchionnewas appointed CEO of Fiat in 2004 and initially he impressed investors.[28]At the end of the 2005 financial year, the company saw its first profit in 17 quarters of 196M for the first 9 months of FY2006.[29]Marchionne reduced Fiat's managerial bureaucracy refocused the business on markets and profit. While chairman, Luca di Montezemolo, dealt with politicians and unions, Marchionne rebuilt the car business. The success of theGrande Puntomodel was in large part responsible for the turnaround in Fiat's fortunes, but the award-winning 500 cemented it. Fiat formed a joint venture with India'sTATA Motors, which has subsequently ended,[30]and with China'sChery Motorswhich didn't conclude. In 2005 Fiat courted Ford,[31]and returned to China with a joint ventureGAC Fiatcreated in 2010. Under Marchionne Fiat also re-entered several large markets that it had exited years before, such as Mexico and Australia.In December 2008, Marchionne announced Fiat had to become one of the top five automakers to survive in the long run. Under Marchionnes leadership, Fiat returned to Canadian and American markets with the new 500. However, since 2009, Marchionne has presided over a business that has experienced a loss in European market share from 9.3 to 6.2 percent.[32]In December 2013, Marchionne announced that he intended to discontinue theGrande Puntoso that the company could focus on "cool, high margin"Fiat 500 (2007)variants and theFiat Panda.[33]In 2010,John Elkannbecame the Chairman of Fiat SpA and shareholders approved a plan to demerger Fiat's capital goods businesses. Agricultural and construction equipment manufacturerCNH GlobalNV, truck makerIveco, and the industrial and marine division ofFiat Powertrain Technologieswere spun off into a new group on 1 January 2011. The parent company,Fiat IndustrialS.p.A., was listed on the Milan stock exchange on 3 January 2011.[34]In 2010, credit rating agencyFitchcut Fiat's debt rating to BB- after it had accumulated a debt of around9.3 billion. In 2013, Fiats debt rating was cut again, this time byMoody's, to Ba3[35]over concerns European demand was lower and debt was falling slower than expected.[36]TheFinancial Timesestimate of Fiat's debt at the time was almost28 billion.[37]Acquisition of ChryslerOn 20 January 2009, Fiat S.p.A. andChrysler LLCannounced their intention to form a global alliance. Under the terms of the agreement, Fiat would take a 20% stake in Chrysler and gain access to its North American distribution network in exchange for providing Chrysler with technology and platforms to build smaller, more fuel-efficient vehicles in the US and providing reciprocal access to Fiat's global distribution network.[38][39]Agreements were signed on 30 April 2009,[40]with Fiat's future shareholding capped at 49% until all government loans had been repaid.[41][42]In addition, the proposed agreement would entitle Fiat to receive a further 15% (without cash consideration) through the achievement of specific product and commercial objectives. No cash or financial support was required from Fiat under the agreement. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models for in the US. Fiat would also provide engine and transmission technology to enable Chrysler to introduce smaller, fuel-efficient models in the NAFTA market. The deal was engineered by Fiat chiefSergio Marchionne, who pulled the Italian group back from the brink of collapse after taking over in 2004. The principal objective of the partnership was to provide both groups with significantly enhanced economies of scale and geographical reach at a time when they were struggling to compete with larger and more global rivals such asToyota,Volkswagenand alliance partnersRenault S.A.andNissan.[38]Fiat would not have to pay any money for its 20% of Chrysler. On 7 June 2009, theIndiana State PolicePension Fund, the Indiana Teacher's Retirement Fund, and the state's Major Moves Construction Fund asked the US Supreme Court to delay the sale of Chrysler to Fiat while they challenge the deal. The funds argued that the sale went against US bankruptcy law because it unlawfully rewarded unsecured creditors ahead of secured creditors.[43]On 9 June 2009, the Supreme Court lifted the temporary hold, clearing the way for Fiat to acquire Chrysler.[44]SeeIndiana State Police Pension Trust v. Chryslerfor more information. On 10 June, the Supreme Court announced that Fiat was now an owner of the new Chrysler a.k.a.Chrysler Group LLC.Marchionne was appointed CEO of Chrysler following its emergence from bankruptcy proceedings. Under his leadership, Chrysler has taken on a structure similar to that of Fiat and has released, in quick succession, a large number of completely redesigned or refreshed vehicles.[citation needed]Fiat launched its500, which had been available in Europe since 2007, in theUnited StatesandCanadain 2011, marking the company's return to theAmerican auto market, which it had been absent from since 1984. Prior to this, Fiat's main presence on the continent was Mexico, where it offers a greater variety of products than in the United States and Canada.On 10 January 2011, Fiat announced that it had increased its share in Chrysler from 20% to 25% following the achievement of the first of three performance objectives.[45]On 11 April 2011, it announced achievement of the second performance objective, increasing its stake a further 5% to 30%.[46]On 24 May 2011, Fiat announced that it had paid Chrysler US$ 1,268million for a further 16% interest, increasing its stake total stake to 46% (fully diluted). The transaction coincided with Chrysler refinancing its debt to the U.S. and Canadian governments.[47]On 25 May autonews.com reported that Fiat could buy government stakes in Chrysler as soon as the end of July 2011, increasing its total stake to 54%.[48]In May 2011, it emerged that Fiat could actually increase its stake in Chrysler Group to more than 70 percent through the exercise of further options.[49]In a regulatory filing dated 22 July 2011, the Michigan-based automaker reported that Fiat held a 53.5% interest (fully diluted). Fiat and Chrylser have both stated that they expect that interest to reach 58.5% by the end of 2011 as result of achievement of the third of the three performance objectives.[50]In 5 January 2012 Fiat released press info that the ownership has increased to 58.5%.[51]The stake was further increased to 68.49% in July 2013.[52]On 1 January 2014, Fiat announced it would be acquiring the remaining shares of Chrysler owned by theVEBAworth $3.65 billion.[53]The deal was completed by 21 January.On 29 January 2014, it was announced that Fiat S.p.A. would be merged into a new company, Fiat Chrysler Automobiles NV, incorporated in the Netherlands with tax domicile in the UK. Fiat Chrysler Automobiles will become the owner of Fiat Group.[3]On August 1, 2014, Fiat S.p.A. received necessary shareholder approval to proceed with the merger (which followed board approval).[4]FCA will be listed on the New York Stock Exchange with an additional listing on the Mercato Telematico Azionario in Milan to follow.Activities

Fiat Group revenues by sector in 2009The group's activities were initially focused on the industrial production of cars, industrial and agricultural vehicles. Over time it has diversified into many other fields, and the group now has activities in a wide range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant worldwide operations, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of whom are outside Italy.Fiat's main shareholders include 30.1% byExor S.p.A(controlled by the Agnelli family), 24.9% by EU institutional investors, 11.2% by outside EU institutional investors and 2.6% byBaillie Gifford & Co., a Scottish investment management company.[1]Principal subsidiariesFiat's principal operating subsidiaries (direct and indirect) include: Fiat Group Automobiles S.p.A. (FGA),Chrysler Group LLC, Fiat Automoveis, S.A. (subsidiary of FGA); FGA Capital S.p.A. (a JV held 50% by FGA and 50% byCrdit AgricoleCF),Ferrari S.p.A.,Maserati S.p.A., Magneti Marelli S.p.A., Teksid S.p.A., Comau S.p.A., Itedi-Italiana Edizioni S.p.A. (see 2010 Annual Report[54])Alliances and joint venturesFiat has undertaken numerous joint ventures and alliances. Commencing in 1978, theType Four platformwas an alliance between Alfa Romeo, Fiat, Lancia and Saab and resulting in a range of cars on sale in the mid 1980s.In 2000 a number of joint ventures were established withGeneral Motorsfollowing GM buying 20% of Fiat while Fiat bought 6% of GM. Complications with the relationship saw these JVs being wound back by 2005.[55]Resulting projects included theGM Fiat Small platformandFiat-GM Powertrain.In 2005, Fiat formed an alliance withFordto create a new small car, resulting in theFiat 500andFord Ka.[56]In 2012, Fiat formed an alliance withMazdato develop and build a new rear wheel drive roadster for the Alfa Romeo and Mazda brands.[57]AutomotiveFor Fiat branded cars seeFiat Automobiles

Global locations of Fiat Group automobile production sites, 2008. Including own plants, joint ventures and license production. Excluding Chrysler.

A Fiat 1500 at a vintage car event in Germany in May 2014

Fiat 500Lin production from 2012

Lancia Delta

Alfa Romeo 159

Maserati GranTurismo

Ferrari 458 Italia

Fiat is the largest vehicle manufacturer in Italy, with cars ranging from small Fiatcity carsto sports cars made by Ferrari, and vans and trucks such as theDucato. Besides Fiat Group Automobiles S.p.A, Fiat Group automotive companies includeChrysler Group LLCandMaserati S.p.A.The Fiat Group Automobiles S.p.A. companies include:Abarth & C. S.p.A.,Alfa Romeo Automobiles S.p.A.,Fiat Automobiles S.p.A.,Fiat ProfessionalandLancia Automobiles S.p.A..Ferrari S.p.A.is 90% owned by the Fiat Group.[58]The company also ownsAutobianchibut the marque has been dormant since 1995, andInnocenti, which ceased production in 1996.TheEuropean Car of the Yearaward, Europe's premier automotivetrophyfor the past 50 years, has been awarded twelve times to the Fiat Group, more than any other manufacturer, most recently with theFiat 500in 2008.[59]Previous Fiat Group models which have won European Car of the Year:Fiat 124(1967),Fiat 128(1970),Fiat 127(1972),Lancia Delta(1980),Fiat Uno(1984),Fiat Tipo(1989),Fiat Punto(1995),Fiat Bravo/Brava(1996),Alfa Romeo 156(1998),Alfa Romeo 147(2001) and theFiat Panda(2004).Trucks & BusesFor Fiat branded trucks & buses from 1903 to 1975, seeFiat Industrial VehiclesIveco, Fiat's former truck, bus and specialty vehicles business unit, was demerged intoFiat Industrialat the beginning of 2011.[60]Commercial vehiclesOn 17 April 2007, Fiat Automobiles'light commercial vehicleunitFiat Veicoli Commercialiwas rebranded asFiat Professional.[61]Some of Fiat's light commercial vehicle products include theFiat Ducato,Fiat ScudoandFiat DoblCargo.Agricultural and Construction equipmentFor Fiat branded Agricultural & Construction equipments from 1917 to 1991, seeFiat Trattoriand from 1992 to 2014, seeCNH Global.ComponentsThe major Italian component makerMagneti Marelliis owned by Fiat, and it in turn owns other brands such as AL-Automotive Lighting, Carello, Cromodora, Cofap, Ergom Automotive, Jaeger, Mako Elektrik, Paraflu, Seima, Siem SpA, Solex, Veglia Borletti, Vitaloni and Weber.Metallurgical productsFiat ownsTeksid S.p.A., the largest iron foundry group in the world with a production capacity of approximately 600,000 tons annually. The company was established in December 1978, and designs and produces cylinder blocks, cylinder heads, exhaust manifolds, drive shafts, camshafts and other components for automobiles and commercial vehicles. Teksid, which is specialized in casting and processing iron, has plants in France, Portugal, Poland, Brazil, Mexico and China. Since 2007, Teksid S.p.A. runs also Teksid Aluminum S.r.l. a company specialized in casting and producing auto components from aluminum alloys.Production systemsProduction systems are made mainly throughComau S.p.A.(now Comau Systems), which bought the American Pico, Renault Automation and Sciaky and produces industrial automation systems. In the 1970s and 1980s, the company became a pioneer in the use of industrial robotics for the assembly of motor vehicles. Fiat assembly plants are among the best automated and advanced in the world.ServicesAn insurance company, Toro Assicurazioni, allowed Fiat to control a relevant part of this market (also with minor companies like Lloyd Italico) and to interact with some associated banks. Toro Assicurazioni was acquired by the giant insurance companyAssicurazioni Generaliand is no longer part of the Fiat Group.ConstructionIngest Facility and Fiat Engineering work in various fields of construction, while IPI is a mediation company that also deals with the management of real estate properties.Information technologyFiat Group is present inITfields and in communications with ICTInformation & Communication Technology, Global Value, TeleClient, London and Atlanet.Publishing and communicationFiat Group also has interests in several major publishing houses and national and local newspapers, such asLa Stampa(created in 1926), Itedi, and Italiana Edizioni. A specialised advertising space reseller is Publikompass, supported by the Consorzio Fiat Media Center. Fiat is also has one of the largest shareholdings inRCS MediaGroup.Other activitiesFiat Gesco, KeyG Consulting, Sadi Customs Services, Easy Drive, RM Risk Management and Servizio Titoli are minor companies that work for public services, delivering services in economics and financial fields. Other activities include industrial securitisation (Consorzio Sirio), treasury (Fiat Geva), Fiat Information & Communication Services.Fiat supports theFondazione Giovanni Agnelli, an important foundation for social and economic research.Palazzo Grassi, a well-known historic building inVenice, now a museum and formerly supported by Fiat, was eventually sold to the French businessmanFranois Pinaultin January 2005.Aviation and motorcycles

Fiat G91T training aircraftMain articles:Fiat Aviazione,AvioandPiaggio AeroFiat, as Fiat Aviazione, was an important aircraft manufacturer, focused mainly on military aviation. After World War I, Fiat consolidated several Italian small aircraft manufacturers, likePomilioandAnsaldo. Most famous were Fiat biplanefighter aircraftof the 1930s,Fiat CR.32andFiat CR.42. Other notable designs were fightersCR.20,G.50,G.55and a bomber, theFiat BR.20. In 1950s, the company designed theG.91light ground attack plane. In 1969, Fiat Aviazione merged withAerferto createAeritalia.In 1959,Piaggiocame under the control of the Agnelli family. In 1964, the aeronautical and motorcycle divisions split to become independent companies. The aeronautical division was named IAM Rinaldo Piaggio. Today the aeronautical companyPiaggio Aerois controlled by the family ofPiero Ferrari, which also holds 10% of the carmakerFerrari.Main article:VespaThe motorcycle division, Vespa, thrived until 1992, when Giovanni Alberto Agnelli became CEObut Agnelli was already suffering from cancer, and died in 1997. In 1999,Morgan Grenfell Private Equityacquired Piaggio.

Fiatartillery tractorin the journalHorseless Age, 1918.WeaponsFiat builtartillery tractorsfor the French and Italian armies inWorld War I.Societ Anonima Fabbrica Armi Torino(SAFAT) was a wholly owned subsidiary of FIAT in the 1930s, designing and manufacturing weapons for the Italian armed forces. After losing a competition to produce a series of new machine-guns for theRegia Aeronautica, SAFAT was sold to the winning competitor -Societ Italiana Ernesto Breda, formingBreda-SAFAT.Rail transport

Early rail cars at theFinnish Railway Museum. The green car is a Fiat and the black car is a CadillacFiat Ferroviaria, there has been a long history going back pre WW2 of Fiat motive power used for both Diesel and electric locomotives and railcars (Littorine) not only in Italy, but other parts of Europe, and in South America, but from the 1970s onward, more widely known throughout the world with their successful commercial development of the Pendolinotilting trains, the first working prototype four-car set being run in the mid-1970s. Fiat Ferroviaria was later sold to Alstom in the middle 1990s.RecreationThe Fiat Group owned theSestriereskiing facilities; the village in theAlpsis a creation of the Agnelli family. The Sestriere skiing facilities were sold by the group in 2006.Enterprises outside ItalySee list ofFiat Group assembly sitesFiat was a key player in developing motor industries for a number of countries from the 1950s, particularly in Eastern Europe, Spain, Egypt, Ethiopia and Turkey. TheAutoVAZstate worksLadaproducts in Tolyatti (Togliatti), Russia, were Fiat based, as were SEAT products of Spain. Lada is now controlled byRenault, and SEAT byVolkswagen. A small number of Fiats were built in Bulgaria. Among Fiat's earliest foreign assembly plants was one inPoughkeepsie, New York, between 1910 and 1913.[16][17]The building is now part of theMarist Collegecampus.Fiat Automveis (Brazil)

The 1979 Brazilian Fiat 147 was the first modern car to run on purehydrousethanol fuel(E100)Fiat Automveis S.A., a subsidiary of Fiat S.p.A.,[62]began making automobiles in Brazil in 1976 beginning with the production of theFiat 147, the Brazilian version of the ItalianFiat 127, produced until 1986. More than 10,000,000 units have been produced in Fiat Automveis factory inBetimsince 1976,[63]plus 232,807 units in the Fiat Argentina plant ofCrdoba. The original factory, located in the city ofBelo Horizonte, cost $250 million to build. The state ofMinas Geraishad a 10-20% stake in the company and also provided special economic benefits to Fiat.[64]Launched in July 1979, the 147 was the first mass-produced car that ran onethanolas fuel instead of petrol.[65][66][67]The performance slightly increased and fuel consumption was 30% higher but the cost of the alcohol was a quarter of the gasoline because, at that time, petrol had become expensive as a consequence of the1979 oil crisis. This version was nicknamedcachacinha(littlecachaa) because it had the scent of that Brazilian drink.

Fiat Siena Tetrafuel1.4, amultifuelcar that runs as aflexible-fuelon gasoline,E20-E25 gasohol, ethanol (E100); or as abi-fuelwithCNGIn October 1984 Fiat Automveis introduced theFiat Uno, which continued on sale until the end of 2013 as the renamed Fiat Mille, resulting in total production of 3.6 million vehicles.[68]Production of theFiat Palioworld car began in 1996.After the successful 2003 introduction offlexible-fuel vehiclesin the Brazilian market,[69]Fiat Automveis launched its first flex model in March 2004, theFiat Palio, followed by theSienaandPalio Weekend.[70]Fiat sold 665,514 vehicles in Brazil in 2008,[71]allowing the carmaker to continue as the market leader for seven years in a row.[72]Flex fuel automobiles represented almost 100 percent of the car sales in 2008, and 92 percent of all light-duty trucks sold.[73]In 2006 Fiat introduced theFiat Siena Tetra fuel, a four-fuel car developed underMagneti Marelliof Fiat Brazil.[74][75]This automobile can run as aflex-fuelon 100% ethanol (E100); or onE20-E25 blend, Brazil's normal ethanol gasoline blend;[76]on pure gasoline (though no longer available in Brazil since 1993,[77][78]it is still used in neighboring countries); or just onnatural gas (CNG). The Siena Tetrafuel was engineered to switch from any gasoline-ethanol blend to CNG automatically, depending on the power required by road conditions.[79]Fiat ArgentinaFiat has been present in Argentina since the beginning of the 20th century. There was a Fiat manufacturing plant in Crdoba at least as far back as 1954 when Fiat entered into a joint venture with two local companies to manufacture tractors. The company was known as Fiat-Concord until 1980. In 1959 the construction of a car plant inCaseroswas approved, and 1960 saw the production there of the first Argentinian produced Fiat passenger car, aFiat 600, after theFiat 1100Export and after in 1963 theFiat 1500. In 1977 appears the Fiat 133, just a rebadged Seat 133 but made in Argentina. By 1978 a car manufacturing facility was well established inCrdoba, producingFiat 128sas well as two models which from the Italian perspective belonged in earlier decades, the125(with some derivates) and the600R.[80]In 1980 a joint venture withPSAcalledSevel Argentina S.A.was begun, which lasted until 1995. The current day automobile manufacturing started with a new factory opened inCrdobaon 20 December 1996.[81]From April 1997 the Siena and Palio models production started.Production was suspended in the early 2000s as the Argentinean economy went downhill. In 2008 Fiat invested new money and the production of Fiat Siena saloon and the Fiat Palio was started. In October 2009, a Fiat Siena HLX becomes the 2 million unit produced by Fiat in Argentina. The Fiat Auto Argentina S.A. is Fiat S.p.A. owned company.[82]Fiat Automobili SrbijaIts first enterprise came in 1955, when it agreed to a deal withYugoslavcarmakerZastavato assemble Fiats for Eastern Europe. The first cars produced by Zastava were its versions of theFiat 1300andFiat 1400. By 1970, Zastava was producing parts for the newerFiat 124andFiat 125models, which were assembled in Poland. TheZastava 750, launched in 1962, was Zastava's version of the iconicFiat 600minicar. It outlived the car on which it was based, with production lasting until 1981. Zastavas were not popular outside of Eastern Europe before the 1980s, although they were exported to the US and several European countries under the Yugo brand during the 1980s.The most famous product launched by Zastava is theZastava 101, a front-wheel drive car based on theFiat 128, also available as ahatchbackversion never sold in Italy. With the demise of theZastava 750in 1981, the minicar gap in the Zastava range was filled by theZastava Koral, which was best known in Britain and America as the Yugo Tempo or Yugo 45/55. It was based on the 1971Fiat 127, which was due to be replaced by theFiat Unoin 1983. Hostility towards Yugoslavia in the wake of the 1992 civil unrest saw a swift ending of imports to both Britain and America. The Zastava factory inKragujevacwas later bombed, but was rebuilt after the war ended, and production continued at another factory inKragujevac.In 1987, Zastava came up with a new car design. TheZastava Floridaknown in other markets as theYugo Sanawas styled byGiorgetto Giugiaroat theItalDesignstudio, featured a range of refinedPeugeotengines. Sales continued in its homeland, with an update at the end of the 1990s. Zastava did not launch another new car for another 16 years. The 2003Zastava 10model was another Fiat designthis time the second generationPunto, and in 2009 was renamed Fiat Punto ClassicA new memorandum of understanding between Fiat and the Serb ministry of economic and regional development about the acquisition of Zastava's Kragujevac plant in 2008 led to a new company being set up in which the Italians would have a 70 percent stake and the Serb government 30 percent.[83]The factory was renamed from "Zastava Automobili Srbija" to "Fiat Automobili Srbija". In 2010 and 2011, FAS (Fiat Automobili Srbija) underwent large-scale reconstruction for production of theFiat 500Lin 2012.[84]Polski Fiat/FSO (Poland)Main article:Fabryka Samochodw Osobowych

Fiat 500 & 126Fiat automobiles have been made in Poland since 1920. In 1932, thePolskie Zakady Inynieryjne (Polish Engineering Works, PZIn)started the production ofFiat 508, produced until 1939 also as a military vehicle. In 1936 the licence was extended to include theFiat 518model. In 1965, the Polish communist government signed a deal with Fiat to produce selected Fiat models in Poland at theFSOfactory inWarsawthat had been built in 1951. Production of the new carthePolski Fiat 125pbegan in 1967. It was visually identical to theFiat 125, but it made use of older Fiat mechanicals which dated back to 1960. The car sold well in its homeland and was soon exported to Western Europe. 1978 saw the appearance of a new five-door hatchback, theFSO Polonez, that made use of Fiat 125prunning gear. After 1982, Fiat withdrew its licence; since then FSO badge was reinstated with thePolski Fiat 125psurviving until 1991, and the Polonez production ending in 2002. FSO was taken over byDaewooof South Korea in 1995, and become independent again in late 2000, after Daewoo went bankrupt and was taken over by General Motors.Fabryka Samochodw Maolitraowych(FSM) inBielsko-BiaaandTychywas a joint venture between FSO and Fiat, and manufactured theFiat 126(p)in 1973 and theCinquecentoin 1991. In 1992 Fiat owned 90% of FSM (called Fiat Auto Poland, since 1993) and since then it producedCinquecento,Uno,Seicento,SienaandPalio Weekendmodels with the capacity up to 200.000 cars a year. In 2003, FSM become the sole producer ofFiat Panda, and in 2007, theFiat 500and its relatedFord Ka[85]Capacity was increased with production reaching over 600,000 in 2009, but dropped below 300,000 in 2013, resulting in the workforce being cut by a third.[86]AutoVAZ Lada (Russia)Main article:LadaIn 1966, Fiat helpedUSSRstate industries build a new car factory (AvtoVAZ) on theVolgariver. A planned city calledTolyatti(named afterPalmiro Togliatti, formerItalian Communist PartySecretary) was developed around the factory, which started producing a "people's car" similar to theVolkswagen BeetleandCitron 2CVof Germany and France. The new Soviet car, called theLada, was a more spacious offering, infour-door saloonandfive-door estatevariants. Fiat installed British machine tools supplied by Herbert-BSA[87]ofBirminghamfor the manufacture of many Lada parts. The 124's design was mechanically upgraded to survive treacherous Russian driving conditions and extremely cold winters. Imports to Western Europe, Canada, and some third world countries sold well owing to their low price. This car was upgraded to become theLada Riva(marketing name in some markets) in 1980. Lada has gone on to develop some of its own models. Thefour-wheel driveLada Nivauses some Fiat based components, e.g. engine and gearbox, but the body and four-wheel drive system are VAZ designs.Bulgaria19671971 producedPirin-FiatinLovech, Bulgaria.Tofa (Turkey)Tofais joint venture owned by Fiat SpA and Ko Holding (37.8% Fiat Group Automobiles, 37.8% Koc and 24.3% others).[88]The Fiat 124 was produced under licence byTofaas theTofa Murat. This was replaced by a version of theFiat 131, known as theTofa ahin(Tofa Murat 131). Today theFiat Lineacar is amongst those manufactured by the Fiat-Tofas joint venture in Turkey, and the company has 12.1% of the Turkish car market as of 2007.[89]SEAT (Spain)In Spain,SEATSociedad Espaola de Automviles de Turismo (Spanish Touring Car Company)was established with Fiat assistance in 1950, producing Fiat models under its own brand name until 1981, when Fiat withdrew its support. In 1982 SEAT signed a cooperation agreement with the German manufacturerVolkswagenand by the end of 1986 after a purchase of a majority stake SEAT had become part of theVolkswagen Group. However, production of some Fiat-based models continued, ending with the Fiat-basedMarbellain 1998.EthiopiaTheFiat 131, known as theHolland CarDOCC.EgyptFollowing theEgyptian Revolution of 1952, PresidentGamal Abdel Nasserordered the EGID (General Intelligence Agent) to establish a state owned automobile company.Nasrwas founded in 1960 in Helwan, Egypt. It began producing some Fiat based models, but later produced theTofa ahinunder license by Tofa. The last Fiat 128 model was built in 2008, while the ahin is in production in Egypt.Currently theEl-Mashreq Company, a part of theSeoudi Groupis the main manufacturer of Alfa Romeo and Fiat vehicles for the Egypt market. TheAAVwas also an Egypt manufacturer for Fiat. They assembled theFiat Ritmoin order of Nasr.IndiaFiat India Automobiles Private Limited(FIAPL) is a joint venture between Fiat andMumbaibasedTata Motors, founded in 1997. Fiat builds thePalio Stile, Linea andPunto.[90]The Fiat plant is situated in Ranjangaon near Pune in Maharashtra and also manufactures theTata Indica.[91]Although not a subsidiary of Fiat,Premier Automobilesof Mumbai was licensed to manufacture versions of theFiat 500for the Indian market. This was followed by theFiat 1100in 1954. In 1973, the Fiat label was replaced with the Premier name.PakistanRaja Motors are the authorized manufacturers of Fiat motor vehicles in Pakistan since 1948. The manufacturing started with VESPA scooters in 1948. The project was expanded in 2001 to facilitate assembly-cum-manufacturing of theFiat Uno. The production facility is located in Landhi Industrial Area,Karachi, Pakistan.Sri LankaIn 1973, entrepreneurUpali Wijewardena's Upali Motor Company began assembly of the local variant of Fiat 128, known as UMC-Fiat 128.[citation needed]Production ended with the introduction of the open-market economy in 1978.North KoreaThe North Korean car manufacturer and dealerPyeonghwa Motorsassembles two Fiat models under licence since 2002: Hwiparam(whistle)based on theFiat Siena, Bbeokgugi(owl)based on theFiat Dobl.ChinaFiat entered into a 50:50 joint venture withGAC Groupin 2010 to createGAC Fiat Automobiles Co, with a factory in Changsha completed in 2012 producing a localised version of theDodge Dartsold as the Fiat Viaggio.See alsoItaly portal

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