The Crisis of Automobile Industry in Italy and Prospects of Recovery (FIAT as an Example)

The purpose of this paper is to study the trends of development of the automotive industry in Italy , and in particular of " Fiat " as the most important advocate of the industry , from 90s . the present time. We investigate the causes and impact of the crisis on the industry as a whole , contemporary issues and strategy of the company. To achieve this goal it was decided to perform the following tasks :1) to give an overall assessment of the crisis in the global automotive industry ;2 ) Identify the impact of the crisis in the industry on the automotive industry in Italy ;3) analyze management steps of " Fiat ";4) to consider the the prospects for the near future.Fiat is trying to cope with the crisis , acting on two fronts : internal organization and external alliances. These two issues are closely linked. To cope with the crisis , we need an alliance , since independence is no longer a basis for sustainability. Allies need to look outside of the old continent, where other rules and organization of work . Only in partnership with the strongest automakers head " FIAT " sees an opportunity to get out of the crisis and severe debt problems. Cooperation " Fiat " with General Motors has not brought the desired result. Later held a successful alliance with Chrysler . Today Italian company wholly owned by Chrysler , which helps " FIAT " rely on a wider market and the availability of new platforms.