Fiat Poland unharmed by HQ driver switch
Changes in policy at the Italian car-maker had been expected after the death of CEO Umberto Angelli last week, and the uncertainty was echoed by a fast slump in Fiat shares, which then recovered quickly as news of the formation of a top-level management team emerged.
The new boss, Luca Cordero di Monte-zemolo, who was responsible for turning around Fiat's luxury wing, Ferrari, has already said that the loss-making Fiat firm must press on with the Angelli restructuring plan in order to survive.
At its plant outside Tychy in the Śląsk region in the south-western corner of the country, Fiat Auto Poland produces the Panda, named "Car of the Year 2004" by an international jury. The biggest-selling car make in Poland, 11,860 new units were sold in the first two months of 2004.
But while it has a well established presence in Poland, the real reason why the company looks not to be disrupted by changes in Italy is that, according to analysts, it is the part of the business that is doing exceptionally well.
"The Panda plant is doing very well, it is exported to all of Europe..." explains Stanisław Sewastianowicz, editor of car specialist magazine Auto Swiat. "The Panda car is of high quality and it is affordable. They are investing more money into it."
But, Sewastianowicz says that Poland is unlikely to receive new production in the worldwide Fiat restructuring drive.
"When Fiat decided to move production to Poland, the Italian trade unions were very angry," he says. "I don't think Fiat would want to do that again."
"I predict no major disruption for Fiat's Polish market," adds Wojciech Drzweiecki of auto sector analysts Samar. "While Fiat is big for Poland, Poland is a small operation for Fiat, and it is still a small market. There is always a possibility that Fiat's restructuring could affect Poland, but I think it's unlikely."
Two years ago, the Angelli family personally invested in the Fiat company to finance its recovery. However, this move required the sell-off of Fiat's aerospace, financing and insurance businesses. Fortunately, at least so far, the sell-off of foreign investments has not been an asset-stripping option that Fiat's leadership has considered.
The new boss, Luca Cordero di Monte-zemolo, who was responsible for turning around Fiat's luxury wing, Ferrari, has already said that the loss-making Fiat firm must press on with the Angelli restructuring plan in order to survive.
At its plant outside Tychy in the Śląsk region in the south-western corner of the country, Fiat Auto Poland produces the Panda, named "Car of the Year 2004" by an international jury. The biggest-selling car make in Poland, 11,860 new units were sold in the first two months of 2004.
But while it has a well established presence in Poland, the real reason why the company looks not to be disrupted by changes in Italy is that, according to analysts, it is the part of the business that is doing exceptionally well.
"The Panda plant is doing very well, it is exported to all of Europe..." explains Stanisław Sewastianowicz, editor of car specialist magazine Auto Swiat. "The Panda car is of high quality and it is affordable. They are investing more money into it."
But, Sewastianowicz says that Poland is unlikely to receive new production in the worldwide Fiat restructuring drive.
"When Fiat decided to move production to Poland, the Italian trade unions were very angry," he says. "I don't think Fiat would want to do that again."
"I predict no major disruption for Fiat's Polish market," adds Wojciech Drzweiecki of auto sector analysts Samar. "While Fiat is big for Poland, Poland is a small operation for Fiat, and it is still a small market. There is always a possibility that Fiat's restructuring could affect Poland, but I think it's unlikely."
Two years ago, the Angelli family personally invested in the Fiat company to finance its recovery. However, this move required the sell-off of Fiat's aerospace, financing and insurance businesses. Fortunately, at least so far, the sell-off of foreign investments has not been an asset-stripping option that Fiat's leadership has considered.
