Italian manufacturer Fiat SPA has divided its car-making business into four units with separate bosses. The company hopes the changes will lead the way back to profitability.
Italian manufacturer Fiat SPA has divided its car-making business into four units with separate bosses. The company hopes the changes will lead the way back to profitability.
Fiat Auto has lost money for three consecutive years and expects to report a loss for 2001.
Profit-boosting moves announced last year included cutting 6 000 jobs and shuttingfactories to boost profit. It is hoped that the reorganisation will also speed up and streamline the decision-making process. The company will also focus on customer satisfaction.
The new structure was outlined to Fiat management at an annual convention by Fiat Auto chief executive Giancarlo Boschetti on Tuesday.
- Gianni Coda, currently the head of Fiat Auto Latin American Operations, will head the new Fiat/Lancia division.
- Daniele Bandiera, currently head of platforms, will head Alfa Romeo.
- Yan Nahum, current chief executive of the Tofas joint-venture in Turkey, will head International Operations.
- Silvano Cassano, chief of Fiat Auto’s Financing and Customer Services division, will head the new Services unit.
There will be an additional section called After Sales, which has also been organised like a business unit. It will be headed by Raimondo Beltramo.
All the unit heads will report to Boschetti, who was appointed Fiat Auto managing director after former managing director Roberto Testore resigned in December. Each unit will be completely autonomous and will have its own production and marketing organisations.
Fiat Auto also said executive vice president positions for marketing and sales, financial and customer services, platforms, production, and international activities have been eliminated.
Those jobs have been folded into the new business units.
“A primary focus of this new organisational structure will be to enhance the specificity of its brands, which represent an important heritage for Fiat Auto,” the company said in a statement.
“The Fiat brand will continue to be aimed at the general public with highly innovative products. Lancia will strengthen is position as an elite and exclusive brand. Alfa Romeo will consolidate its place in the top tier of stylish sports cars brands through the improvement of its sales volumes and the entry into new markets.”
