The Case of Fiat India

Florian A. A. Becker-Ritterspach
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Florian A. A. Becker-Ritterspach: University of Groningen

Chapter 6 in Hybridization of MNE Subsidiaries, 2009, pp 136-172 from Palgrave Macmillan

Abstract: Abstract Fiat’s internationalization starts already with car export before the First World War and is triggered by the company’s small domestic market (Volpato, 2000/2001). After the Second World War Fiat’s internationalization strategy increasingly focuses on setting up production sites for small cars in emerging markets. Volpato (2000/2001) calls Fiat’s path also a ‘forced specialization’. He sees it as the result of tax regimes (i.e. heavy tax progression with engine size) and gasoline prices in Italy, dating from the fascist period and continued after the Second World War. Volpato argues that the business conditions in Italy ‘progressively reduced the possibilities for Fiat to compete in foreign markets on higher segments of automobile production’ (Volpato 2000/2001, p. 2). Fiat’s ‘forced specialization’ explains why Fiat shifts its internationalization focus comparatively early to emerging markets, which eventually culminates in an emerging market World Car strategy in the 1990s and beyond.

Keywords: Industrial Relation; Supply Relation; Kanban System; Paint Shop; Brownfield Site (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1057/9780230233492_6

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