Razionalizzazione della struttura produttiva di Fiat auto e dei maggiori Oem

For both 2000 and 2001 and for all the eight largest European car manufacturers, referring to their balance sheet and other public data, the author has analysed their plant capacity and production rate, as well as the interrelationship of fixed, variable costs, sales revenue, and profits. He has estimated each manufacturer’s economic production, or break-even, and the gap between the actual and the economic production. This gap was then correlated to the percentage of current pre-tax profit on net sales. The correlation resulted extremely significant (R2 equal to 0.94). In 2001: Bmw, Psa, VW and Renault’s operation was above the break-even point and they yielded a proportional profit; Ford, DaimlerChrysler and Fiat Auto’s operation was below break-even and they experienced a proportional loss. GM was at the break-even point. So as to move quickly away from this situation Fiat Auto needed to reduce its capacity by shutting down those less efficient plants. Many other car manufacturers had already introduced a similar strategy.;

Riccardo Gallo, Razionalizzazione della struttura produttiva di Fiat auto e dei maggiori Oem in "ECONOMIA E POLITICA INDUSTRIALE " 119/2003, pp , DOI: