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PPT : The Automotive And Construction Equipment Industry Italy
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THE ITALIAN MANUFACTURING INDUSTRY PRODUCES FOR A VALUE OF SEK 7 600 BILLION
* The total turnover of the Italian manufacturing industry is SEK 7 615 billion
o the Swedish manufacturing industry’s turnover is SEK 1 357 billion
* The most important sectors within the manufacturing industry are construction of machinery and food related production
* There are approximately 540 000 companies active within the manufacturing industry in Italy
o 4.9 million employees
o The Italian industrial structure is dominated by small companies. 83 % of the manufacturing companies employs less than 9 employees.
* The average labour cost for an industry worker in Italy is SEK 198 per hour
THE ITALIAN PRODUCTION OF PASSENGER CARS HAS PERFORMED POORLY BUT IS SHOWING SIGNS OF RECOVERY
* The Italian quote of the worldwide vehicle production has decreased from 8,2 % in 1999 to 4,7 % in 2004.
o In terms of volume this means a decrease of about 40 %. Compared with 2004 the production in 2005 decreased with about 13 %.
* The problems can in part be explained by Investment in lower-cost production abroad.
* Another reason for the decrease is the sluggish development and problems of Fiat Auto which have four major explanations:
o Product range: Limited and underdeveloped. Insufficient investments in R&D and product development
o International presence: Significant presence on to few foreign markets. Inability to take advantage of motorization in developing countries.
o Sales and After Sales network: Underdeveloped in terms of service quality and customer satisfaction.
o C-segment: Wrong market positioning of the Fiat Stilo has jeopardized the presence in a segment with very high volumes.
* Fiat is now however showing signs of a strong recovery and future prospects looks brighter.
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