Fiat-The Italian Motor Company
An acronym for Fabbrica Italiana Automobili Torino(In English it is Italian Automobile Factory of Turin), is an Italian automobile manufacturer, engine manufacturer, and an industrial group based in Turin.It was founded in 1899 by a group of investors,which included Giovanni Agnelli(He led the company until his death in 1945).Fiat based cars are constructed all over the world—the largest concern outside Italy is in Brazil. It has factories in Argentina and Poland also.They have joint ventures also ,in France,South Africa,India etc.
They mainly concentrate in cars and agricultural vehicles.But over the time they diversified into financial services as well.In 1900, the first Fiat factory opened in Carso Dante and with a workforce of 150 people.Its first car was the 3 ½ CV , with a 697 cc boxer twin engine.By 1904, a Fiat logo came as an oval with a blue background.Fiat opened there US factory in 1908,and at that time it was considered a luxury among American domestic cars.In the next few years company grew in leap and bounds.And duringthis period they even expanded their product line totrucks,marine engines,and commercial vehicles.They even manufactured tanks and aircrafts.Fiat always explored new sectors to diversify which include public transportation lines,steel industry etc.
In course of time,and as a part of business development most automative companies around the world become holding companies of foreign as well as domestic competitors.In 2000 a joint venture agreement gave General Motors Corps a stake in Fiat.During that time GMC’s reputation was so high for acquiring companies.This made a suspicion that Fiat is on the line.But Fiat did not see the GM partnership as a threat,but they took the opportunity to off-load its automotive business.The agreement was like Fiat have the right to sell its automobile division to GM at a fair price after four years and if GM is not willing to take over they have to pay a penalty of $2 billion. Later when Fiat tried selling GM chose the penalty.Ironically now in 2009 the scene is just opposite, recently news says Fiat is bidding for GM’s Opel-Vauxhall.
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